What to look out for:

• When a stock breaks a record price high but the Histogram is responding limply in tiny bars, bad sign! Sell. Basically, it means that though at the moment the bulls are showing off their strength, the bears are really in control of the situation.

  A good example of this is Chrysler. Take a look at the graph - specifically mid-April. There's a MACD green bar over the price graph, and it hit record price highs, but the MACD Histogram is only exhibiting small bars. Watch how the price action went during that MACD green period -- the price just kept falling.

• When a stock hits a record low and the Histogram is lurking below the centerline, it's a good idea to consider buying that stock.