Let's talk about this MACD golden cross at $DOGE 4 hours. First, let's clarify two shortcomings of the indicator:
First, lag. MACD is derived from moving averages, so by the time a golden cross appears, the price has usually already risen some way from its low (up 1.38% over 24h).
Second, it fails in choppy markets. In a range-bound market, golden and death crosses keep appearing, producing plenty of false signals.
Before this crossover, the opposing histogram bars lasted only 7 four-hour candlesticks, so the period was brief; watch out for repeated crossovers. Also, since it's below the zero line, treat it as a rebound for now.
#DOGE
First, lag. MACD is derived from moving averages, so by the time a golden cross appears, the price has usually already risen some way from its low (up 1.38% over 24h).
Second, it fails in choppy markets. In a range-bound market, golden and death crosses keep appearing, producing plenty of false signals.
Before this crossover, the opposing histogram bars lasted only 7 four-hour candlesticks, so the period was brief; watch out for repeated crossovers. Also, since it's below the zero line, treat it as a rebound for now.
#DOGE