Just saw: A $BTC 4-hour MACD golden cross below the zero line.
People often ask what MACD means, so here's my take.
MACD is calculated from moving averages, so it inherently lags: by the time a golden cross or death cross appears, prices have usually already made a move.
Many people look for bearish and bullish divergences: when the price makes a new high but MACD doesn't, or the price makes a new low but MACD doesn't keep up, this is often seen as a sign of weakening momentum.
Indicators can fail, so don't skip risk management: thinking about what to do if you're wrong is more important than guessing whether you're right.
#BTC
Personal notes only. Make your own trading decisions.
People often ask what MACD means, so here's my take.
MACD is calculated from moving averages, so it inherently lags: by the time a golden cross or death cross appears, prices have usually already made a move.
Many people look for bearish and bullish divergences: when the price makes a new high but MACD doesn't, or the price makes a new low but MACD doesn't keep up, this is often seen as a sign of weakening momentum.
Indicators can fail, so don't skip risk management: thinking about what to do if you're wrong is more important than guessing whether you're right.
#BTC
Personal notes only. Make your own trading decisions.