A trend and momentum indicator that tracks the difference between two moving averages against a signal line.
MACD has three components: the MACD line (difference between the 12-period and 26-period EMA), the signal line (9-period EMA of the MACD line) and the histogram (difference between MACD and signal). When the MACD line crosses above the signal line (bullish crossover) that's read as a long signal; the reverse is a bearish crossover. The histogram shows momentum strength: shrinking bars ahead of a crossover often hint at an imminent reversal.
DAX H4: the MACD histogram has been shrinking for three candles while price still rises — momentum weakness, often a precursor to a bearish crossover.