How Do You Trade Stocks With MACD Histogram?
There are two primary ways to trade stocks. The first is to use fundamental analysis. With this technique you are looking at the “fundamentals” of the company you are considering investing in. You will take into consideration things such as P/E Ratio, annual sales, and the prospects for the business that they are engaged in. Another way to trade stocks is to use technical analysis. In doing this you are using pre-developed indicators that attempt to measure things such as current price action and volume. One such indicator is the MACD Histogram. MACD is short for Moving Average Convergence Divergence. Let’s take a look at how to use this indicator to improve your stock trading. Add the indicator to any of the free charting services that utilize it. I use Stockcharts.com but there are many others. You can use Bigcharts.com and you can download a free program like IncredibleCharts.com. Each of these will enable you to add the MACD Histogram at the bottom of your chart. Use the default se
