When the MACD line crosses Above the signal line (lower half of the histogram) = Buy signal.
When the MACD line crosses Below the signal line (upper half of the histogram) = Sell signal.
Trading
MACD
Moving Average Convergence Divergence (MACD) is a momentum indicator that relies on moving averages to calculate the strength of price trends.
On top of that, the MACD is best known for giving out potentially accurate buy/sell signals as follows :
When the MACD line crosses Above the signal line (lower half of the histogram) = Buy signal.
When the MACD line crosses Below the signal line (upper half of the histogram) = Sell signal.
When the MACD line crosses Above the signal line (lower half of the histogram) = Buy signal.
When the MACD line crosses Below the signal line (upper half of the histogram) = Sell signal.
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MACD Line
The MACD line is calculated by substracting a longer 26-period exponential moving average (EMA) from a shorter 12-period EMA (default values).
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Signal Line
The signal line is a 9-period EMA (default value).
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Histogram
In terms of size, the histogram is proportional to the distance between the MACD line and the signal line. In terms of color, the histogram turns green when the MACD line crosses above the signal line, and red when the MACD line crosses below the signal line.