๐ $Lobster: The 4-hour MACD has formed a death cross below the zero line.
People post crossover signals every day, but what really matters is where the crossover occurs and what the preceding trend was.
DIF (also called the MACD line) = 12-period EMA โ 26-period EMA; DEA (also called the signal line) is calculated by taking a 9-period EMA of the DIF.
In a sideways market, DIF and DEA can easily intertwine, with golden and death crosses appearing frequently. In such conditions, these crossovers have little reference value.
Itโs safer to look for confirmation from multiple data points rather than relying on just one, but even a combination of signals canโt provide certainty.
People post crossover signals every day, but what really matters is where the crossover occurs and what the preceding trend was.
DIF (also called the MACD line) = 12-period EMA โ 26-period EMA; DEA (also called the signal line) is calculated by taking a 9-period EMA of the DIF.
In a sideways market, DIF and DEA can easily intertwine, with golden and death crosses appearing frequently. In such conditions, these crossovers have little reference value.
Itโs safer to look for confirmation from multiple data points rather than relying on just one, but even a combination of signals canโt provide certainty.