Let's talk about this MACD death cross on the $ZEC daily chart. First, let's clarify two limitations of the indicator:
First, it lags. MACD is derived from moving averages, so by the time a death cross appears, the price has usually already fallen some way from its high (24h -8.46%).
Second, it struggles in choppy markets. Golden and death crosses can appear repeatedly during sideways trading, producing many false signals.
Before this crossover, the countertrend bars persisted for 12 daily candles. The one-way move had some length to it, making this crossover somewhat cleaner than one in a choppy market.
First, it lags. MACD is derived from moving averages, so by the time a death cross appears, the price has usually already fallen some way from its high (24h -8.46%).
Second, it struggles in choppy markets. Golden and death crosses can appear repeatedly during sideways trading, producing many false signals.
Before this crossover, the countertrend bars persisted for 12 daily candles. The one-way move had some length to it, making this crossover somewhat cleaner than one in a choppy market.