Need Help on MACD

Hi,

I am trying to understand how to read and interprete MACD. Can any expert help?
1) What does the histogram represent?
2) What does the 2 line cross or single line represent?
3) How do I read trend from the MACD?
4) What time frame is most applicable when using MACD?
5) What is the most appropriate parameter to used?

Thanks in advance anyone?

The first line is the difference between the 12 and 26 EMA (called MACD)while the second line (often called the signal line) is the 9 EMA smoothing of the first line.

The histogram represents the difference between the two lines (MACD and Signal).

MACD works on all time frames. I don't particularly think of MACD as a trending indicator but if you insist, the trend is up when the fast line is above the slow line and the trend is down when the fast line is below the slow line.

The standard settings are: Fast = 12, Slow = 26, and smooth = 9. In my opinion, there is no good reason to monkey with these settings.

Gerald Appel (inventor of MACD) states that the longer term average should be 2-3 times that of the shorter average.