Let's talk about this MACD golden cross on the $AAVE 4-hour chart. First, let's be clear about its two shortcomings:
First, lag. MACD is derived from moving averages, so by the time a golden cross appears, the price has usually already moved some distance off its low (up +4.06% over 24h).
Second, it struggles in choppy markets. In a sideways market, golden and death crosses can appear repeatedly, producing many false signals.
Before this crossover, the opposite-direction histogram bars persisted for 39 4-hour candlesticks. The trend leg had some length, making this crossover cleaner than one in a sideways market. Since it is also below the zero line, treat it as a rebound for now.
#AAVE
This is a personal opinion, not a recommendation to take any action.
First, lag. MACD is derived from moving averages, so by the time a golden cross appears, the price has usually already moved some distance off its low (up +4.06% over 24h).
Second, it struggles in choppy markets. In a sideways market, golden and death crosses can appear repeatedly, producing many false signals.
Before this crossover, the opposite-direction histogram bars persisted for 39 4-hour candlesticks. The trend leg had some length, making this crossover cleaner than one in a sideways market. Since it is also below the zero line, treat it as a rebound for now.
#AAVE
This is a personal opinion, not a recommendation to take any action.