The distinction between 5 period MA & 35 period MA depicted as a histogram is called Elliot Oscillator.
In wave 3, the prices are trading in a rather strong trend. That is the reason why the 5ma moves away from 35 MA which is slower at a fast rate and the result is that the oscillator gets a high peak in ~3. There is no strong trend as in ~3 and therefore a smaller peak in the oscillator, even though in ~5 prices they are higher. Historical tests demonstrate that 94% of time the 5/35 oscillator moves back to the zero point during ~4 and consequently holds with ~4.