A friend asked me today: “The $UNI 4-hour MACD has formed a death cross. Should I get out?”
I replied with a few honest thoughts:
1. This is a death cross below the zero line, which means weakness remains and the recovery still hasn’t materialized;
2. MACD lags. By the time it crosses, the price has already moved quite a bit;
3. Don’t look at just one indicator—consider volume and key levels together.
He thought it over and said, “After going in circles, I still have to make my own call.” Exactly. Indicators are just a heads-up.
I replied with a few honest thoughts:
1. This is a death cross below the zero line, which means weakness remains and the recovery still hasn’t materialized;
2. MACD lags. By the time it crosses, the price has already moved quite a bit;
3. Don’t look at just one indicator—consider volume and key levels together.
He thought it over and said, “After going in circles, I still have to make my own call.” Exactly. Indicators are just a heads-up.