What Does the MACD Colored Histogram Tell You?
- Green: Indicates a Bullish Trend
- Red: Signals a Bearish Trend
- Gray: Represents a Retracement in the current Bullish or Bearish trend
The MACD (Moving Average Convergence Divergence) Colored Histogram is a handy tool that can help you identify the momentum of the market. When you see green, it’s time to consider a buy, while red tells you to be cautious and look for selling opportunities. Gray bars are a heads-up that a trend reversal might be on the horizon.
Many traders find it beneficial to pair the MACD Histogram with Bollinger Bands. This combination can help pinpoint potential reversal points within an ongoing trend, giving you an edge in your trading strategy.
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