$W 4 The hourly MACD formed a death cross above the zero line, after 7 consecutive bars moving in the opposite direction before the crossover.
Let's use this example to break down the MACD.
A golden cross occurs when the DIF crosses above the DEA, while a death cross occurs when the DIF crosses below the DEA. In other words, the histogram switches from negative to positive or from positive to negative.
Different charting tools may calculate the MACD slightly differently. A crossover that appears during the trading session may disappear by the close, so crossovers confirmed at the close are more reliable.
Cross-checking multiple indicators is more prudent than relying on just one, but even more indicators can't provide a definitive answer.
#W
Let's use this example to break down the MACD.
A golden cross occurs when the DIF crosses above the DEA, while a death cross occurs when the DIF crosses below the DEA. In other words, the histogram switches from negative to positive or from positive to negative.
Different charting tools may calculate the MACD slightly differently. A crossover that appears during the trading session may disappear by the close, so crossovers confirmed at the close are more reliable.
Cross-checking multiple indicators is more prudent than relying on just one, but even more indicators can't provide a definitive answer.
#W