Phototron Holdings Inc (PHOT)’s MACD Histogram reading is currently above the zero line, indicating a positive chart trend for the shares. Shares recently touched 0.0092 on a recent bid, moving -0.002 in the most recent session.
Created by Thomas Aspray in 1986, the MACD Histogram is a visual indicator of the difference between the MACD line and the Signal line, which is a default 9 period ema of the MACD line. The histogram is an oscillator that moves above and below the zero line, just as the MACD line does. Keep in mind when using this oscillator, that it takes four mathematical steps from price itself to create the 4th derivative, the histogram: Price => two ema averages => MACD line = Signal line => Histogram. Which means it lags price quite a bit. But like all derivatives of price, it’s much smoother than price itself.
If the MACD is above zero it helps confirm an uptrend; below zero and it helps confirm a downtrend. Zero line and Signal line crossovers are used as trade signals to enter and exit trending trades. Losing trade signals occur when crossovers occur in rapid succession due to choppy price action. Divergence shows when momentum is slowing, but it doesn’t indicate when a reversal will occur (if it occurs). Combing different elements of each strategy makes the indicator more useful, such as taking buy signals following a bullish divergence. Using price and trend analysis will aid in determining which signals to take, such as only taking buy signals when a long-term uptrend is in place.
Turning to some additional key metrics, the 14-day ADX for Phototron Holdings Inc (PHOT) is 40.39. Generally speaking, an ADX value from 0-25 would indicate an absent or weak trend. A value of 25-50 would indicate a strong trend. A value of