MACD Histogram
The difference between the MACD line and its signal line, plotted as bars around a zero axis.
Formula
Histogram = MACD Line - Signal Line
Unit
₹
In depth
The histogram crosses zero exactly when the MACD crosses its signal line, so it contains no additional information — it simply makes the crossing and the rate of change of the gap easier to see. Its bars shrinking while price still rises is the visual form of what users call momentum fading, which is a description of the second derivative of a smoothed series and is several steps removed from the market. Because it is a difference of differences, it is noisier than either underlying line. The entry describes the calculation; nothing about future prices is implied.
Worked example
MACD at ₹3.2 with a signal line at ₹2.8 gives a histogram bar of ₹0.40. If MACD falls to ₹2.9 while the signal rises to ₹2.9, the bar is zero — the same instant the two lines cross.
Illustrative figures, chosen so the arithmetic is easy to follow. Not a live price and not a valuation of any company.
Educational reference only
This entry explains what “MACD Histogram” means. It is not investment advice and not a recommendation to buy or sell any security. Any numbers above are illustrative, not live prices, and nothing here predicts price direction or rates a stock. Consider your own circumstances and consult a SEBI-registered investment adviser before acting.