Macd Histogram Vs. MACD Crossover

Discussion in 'Technical Analysis' started by Optionpro007, Jun 22, 2005.

  1. If anybody has an opinion....

    If the Macd histogram and the MACD are on opposite sides of the chart, i.e. histogram showing a divergence on one side vs
    fresh crossover on the opposite side....
    which one should one follow the histogram or the macd crossover?

    Which one has more strength ?

    Thanks !
  2. Hi

    Very interesting question.

    The MACD and the MACD dif are my prefered indicator.

    The first point is to know how is running in a superior level of time.

    If you works daily you need to know what is the indicator situation weeky and monthly.

    In order to see better the structure of the Macd dif I employ a indicator with the dif double.

    For the ^DJI looks ...

  3. gnome


    Neither. Both are moronic concepts. Suggest you do your fishing elsewhere.
  4. The macd histogram gives depth and dimension to what the macd lines are telling you. They are used in conjunction with one another and one isnt really stronger than the other.
    Is that the answer you were looking for?
  5. Truff


    Thats an intelligent answer. How long did it take you to come up with that?
  6. gnome


    The length of the process is irrelevant. All that matters is coming to to correct conclusion.

  7. Thanks Capamunt,

    The macd hist is also my favorite indicator. My question referred to what the Dow weekly is showing right now. So comparing a daily or a monthly in this case wouldn't work.

    In your experience, do you believe the monthly at this time is bearish or bullish ?

    Thanks !
  8. Not quite. I am suggesting that one has to have more importance than the other in cases like I am referring to.

    I agree with you when both are used in conjunction. But if they are at exact extremes only two things can happen, and one of them must prevail more often than the other.

    And my experience is not vast enough to come up with a sensible conclusion. I will obviously get my question answered by the market during the next ten days for what the weekly DOW is showing now. But I was interested more in the historical performance of both indicators when this sort of thing happens.

    Thanks anyway !
  9. Hi,

    In this chart I put my Macd Histogram Trading System.

    Is not perfect, is not easy and is not posible to make automatic, but run better than many others.

    That is the situation for ^DJI.

    I obtain this image making a trick on my old and obsolete SuperChart, je, je, je.

  10. Hi,

    And the same situation for the MACD alone, without histogram.

    As you see is very difficult make a choice between Macd alone or Macd Histogram.

    #10     Jun 24, 2005