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| MACD Histograms locate reversals and time breakouts. Start with classic settings and customize them as experience builds. Use the standard 12-26-9 to track crowd behavior through all time frames. Never apply the indicator in a vacuum. Momentum means little unless the markets offer good opportunities to capitalize upon it. Since everyone using the classic settings sees the same thing at the same time, successful entry requires superior pattern reading skills. But the histogram still offers an excellent tool to track important swing movement. It generates two types of signals. The early one rings when the histogram changes direction at an extreme level. These sharp turns often occur before price but print relatively few false readings. The later signal flashes when price crosses the central -0- line. Most whipsaws occur right near this axis. Always cross-verify this center signal against key S/R and breakout levels on the price pattern. |
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