Let’s talk about this MACD golden cross on the $ZEC 4-hour chart. First, it’s important to understand its two limitations:
First, lag. MACD is derived from moving averages, so by the time a golden cross appears, the price has often already risen some distance from its low.
Second, it’s unreliable in choppy markets. In a range-bound market, golden and death crosses can appear repeatedly, producing many false signals.
Before this crossover, the opposing histogram bars continued for 12 four-hour candles. The one-way move wasn’t particularly short, so this crossover is cleaner than one in a sideways market. Also, since it’s below the zero line, treat it as a rebound for now.
#ZEC
This is not trading advice.
First, lag. MACD is derived from moving averages, so by the time a golden cross appears, the price has often already risen some distance from its low.
Second, it’s unreliable in choppy markets. In a range-bound market, golden and death crosses can appear repeatedly, producing many false signals.
Before this crossover, the opposing histogram bars continued for 12 four-hour candles. The one-way move wasn’t particularly short, so this crossover is cleaner than one in a sideways market. Also, since it’s below the zero line, treat it as a rebound for now.
#ZEC
This is not trading advice.