Let’s talk about this MACD golden cross at $ADA 4 hours. First, let’s be clear about its two shortcomings:
First, it lags. MACD is derived from moving averages, so by the time a golden cross appears, the price has usually already risen some distance from its low (already up +6.79% in 24h).
Second, it’s vulnerable to choppy markets. In a range-bound market, golden and death crosses can appear repeatedly, creating plenty of noise.
Before this crossover, the opposing histogram bars persisted for 18 four-hour candles. The trend leg wasn’t short, so this crossover looks cleaner than one in a sideways market. Also, since it’s below the zero line, treat it as a rebound for now.
#ADA
NFA, DYOR.
First, it lags. MACD is derived from moving averages, so by the time a golden cross appears, the price has usually already risen some distance from its low (already up +6.79% in 24h).
Second, it’s vulnerable to choppy markets. In a range-bound market, golden and death crosses can appear repeatedly, creating plenty of noise.
Before this crossover, the opposing histogram bars persisted for 18 four-hour candles. The trend leg wasn’t short, so this crossover looks cleaner than one in a sideways market. Also, since it’s below the zero line, treat it as a rebound for now.
#ADA
NFA, DYOR.