I’m trying to understand the display of MACD Histogram in TC2000. I understand how the MACD is created (commonly referred to as “Line 1”) and the Moving Average (commonly referred to as “Line 2”). But the MACD Histogram has me stumped.

In TC2000 Help it says, “The histogram is the difference between the two MACD lines.” And that is also the definition of the histogram I have found in every other reference I’ve consulted. However, when I look at an actual chart display in TC2000, I can’t seem to get the math right.

Example:

Stock: VZ (Verizon Communications)

Dates: 2/25/2013 thru 2/28/2013

The numbers (and the graph) show:

                                   2/25/13         2/26/13          2/27/13           2/28/13

MACD H 12 26 9         -5.00            -3.96              -3.12               -2.46

MACD 12 26                 0.67             0.73               0.78                0.83

EAvg9                           0.63             0.65               0.68                0.71

Key: MACD H 12 26 9         Chart histogram plotted value

MACD 12 26                        Chart “Line 1” plotted value

Exp Moving Avg 9                Chart “Line 2” plotted value

By definition (as I understand it from the Help) the histogram plotted value is supposed to be the difference between Line 1 and Line 2…but can anyone tell me how the values listed above relate to each other under that formula? How do you combine 0.67 and 0.63 to get -5.00? Or 0.73 and 0.65 to get -3.96? 0.78 and 0.68 to get -3.12? 0.83 and 0.71 to get -2.46? I’m confused.

Go to more recent data.

Exp moving averages take time to initialize.

When it reads minus 5 the numbers arent accurate yet.

Use recent data.

Thanks

Thanks. That worked.