A positive divergence in the MACD-Histogram indicates that MACD is strengthening and could be on the verge of a bullish moving average crossover. Broadly speaking, a widening gap indicates strengthening momentum and a shrinking gap indicates weakening momentum. The main signal generated by the MACD-Histogram is a divergence followed by a moving average crossover. A bullish signal is generated when a positive divergence forms and there is a bullish centerline crossover. A bearish signal is generated when there is a negative divergence and a bearish centerline crossover.
Divergences can take many forms and varying degrees.
Slant divergences generally cover a shorter timeframe than divergences formed with two peaks or two troughs. The world of technical analysis is not perfect and there are exceptions to most rules and hybrids for many signals. General Electric A peak-trough divergence occurs when at least two peaks or two troughs develop in one direction to form the divergence. Peak-trough divergences usually cover a longer timeframe than slant divergences. On a daily chart, a peak-trough divergence can cover a timeframe as short as two weeks or as long as several months.