by Gavin » Fri Nov 27, 2015 5:15 pm
Hi Steve,
I think it might be technically possible for me to add a histogram to the MACD, so perhaps it is something that I can try to implement it the future.
The MACD histogram is just a measure of the difference between the MACD line and it's moving average line. So in the meantime, you could just look for whether the MACD is below its moving average, which is when the histogram would be below zero. When the two lines cross over, the histogram would cross over the zero line at the same time.
By nature MACD it is a lagging indicator, so indicators are a contentious issue, some people cling to them, while other people believe that the market is more of a random walk and that indicators can stay overbought or oversold for longer than a trader can remain solvent. Some people might find them useful as part of a mix of decision making signals. For example, you might trade based mostly on other factors such as support and resistance, weight of money pressures, whether the back or the lay side is being transacted the most, other runners prices leading the market etc., but some people might also take comfort from watching an indicator at the same time.
Kind regards,
Gavin