"About the Difference Between MACD, Its Solid and Hollow Bars"

The MACD indicator (Moving Average Convergence Divergence), officially known as the Smoothed Moving Average Divergence, is a technical analysis tool used to track trend movements and assess buy and sell opportunities. It was created in 1979 by Gerald Appel.
The MACD indicator is based on the construction principle of moving averages, smoothing the closing prices, calculating the arithmetic mean, and then deriving the indicator. It is a trend-following indicator.
It consists of five parts: the long-term DEA, the short-term DIF, the red energy bars, the green energy bars, and the zero line (the bullish-bearish dividing line).
Default parameters are 12, 26, and 9. The calculation method involves subtracting the slow exponential moving average (EMA26) from the fast EMA12 to get the fast line DIF, then multiplying 2 by the difference between DIF and its 9-day weighted moving average DEA to obtain the MACD histogram.
The zero line helps distinguish bullish and bearish market conditions. When the MACD histogram appears above the zero line, it indicates a bullish trend. The crossing patterns and positional relationships among the DIF line, DEA line, zero line, and MACD histogram can generate various signals, providing decision-making references for short-term investors.
Features include more frequent fluctuations of the DIF line compared to the DEA line; the MACD histogram oscillates above and below the zero line; fundamentally, the MACD indicator describes momentum.
The MACD indicator originates from the smoothed moving average EMA of stock prices, characterized by stable moving averages and trend-following ability, objectively reflecting market momentum. It also eliminates the false signals sometimes generated by moving averages, increasing accuracy in medium- and long-term trend analysis. However, due to its lagging nature, short-term fluctuations are hard to reflect promptly on the MACD, making it unsuitable for ultra-short-term trading.
In consolidating markets, the MACD generally oscillates around the zero line and is not suitable for use during sideways markets.

In the MACD indicator, solid and hollow bars are mainly used to distinguish the current market trend. Their core difference lies in color and position, as follows:

Green bars above the zero line represent an upward trend (bullish dominance), characterized by the fast line (DIF) crossing above the slow line (DEA), forming a "golden cross."

Red bars below the zero line represent a downward trend (bearish dominance), characterized by the fast line crossing below the slow line (DEA), forming a "death cross."

Core logic: The MACD bars essentially represent twice the difference between the fast and slow lines, providing a visual display of their convergence and divergence.

When the bars change from solid to hollow, it may indicate a trend shift from decline to rise;

Adding color, when the green bars above the zero line change from hollow to solid, it indicates the top has been reached, and the trend is reversing from upward to downward, turning downward.

Conversely,

When the bars change from hollow to solid, it may indicate a trend shift from rise to decline.

Adding color, when the red bars below the zero line change from hollow to solid, it indicates the bottom has been reached, and the trend is reversing from downward to upward, turning upward.

The length of the bars also reflects the strength of the trend momentum—the longer the bar, the stronger the momentum.

Red hollow bars near the zero line generally indicate a declining market with bearish strength prevailing. This suggests increasing bearish power, and it is not advisable to chase rebounds at this time;

If more than three consecutive red hollow bars appear, consider exiting the market.

Red solid bars below the zero line usually indicate a temporary stabilization of the decline and the beginning of an upward trend, with bullish strength relatively strong. When the red solid bars expand, each pullback can be a low-entry point for long positions; when the red bars shorten, each rebound might be a trap for chasing the rally, and it’s not recommended to buy high.

Hollow bars: Usually appear during market consolidation or correction phases, with relatively gentle shapes.

Solid bars: Usually appear during market uptrends or downtrends, with steeper shapes.

It should be noted that the hollow and solid bars in the MACD indicator are only reference signals for market trend and bullish/bearish strength. Specific interpretation should be combined with market conditions and other technical analysis tools for comprehensive judgment.