A few thoughts on this MACD golden cross on $Lobster’s 4-hour chart. First, let’s be clear about two limitations of the indicator:
First, it lags. MACD is calculated from moving averages, so by the time a golden cross appears, the price has usually already moved some distance from its low (up 24.63% in the past 24 hours).
Second, it can fail in choppy markets. In a range-bound market, golden and death crosses can keep appearing back and forth, creating a lot of noise.
Before this crossover, the opposing histogram bars lasted only 7 four-hour candles—a relatively short time—so watch out for repeated crossovers. Also, since it’s below the zero line, treat it as a rebound for now.
#Lobster
This is just a record and something I’m sharing, not investment advice.
First, it lags. MACD is calculated from moving averages, so by the time a golden cross appears, the price has usually already moved some distance from its low (up 24.63% in the past 24 hours).
Second, it can fail in choppy markets. In a range-bound market, golden and death crosses can keep appearing back and forth, creating a lot of noise.
Before this crossover, the opposing histogram bars lasted only 7 four-hour candles—a relatively short time—so watch out for repeated crossovers. Also, since it’s below the zero line, treat it as a rebound for now.
#Lobster
This is just a record and something I’m sharing, not investment advice.