$ETH 4-hour MACD formed a bearish crossover below the zero line, after 27 consecutive histogram bars moving in the opposite direction before the crossover.
When I first started learning MACD, I would jump in as soon as I saw a crossover. It took me a while to understand that a crossover’s significance depends on where it occurs and on the preceding one-sided trend. A bullish crossover above the zero line is often seen as a continuation of the trend, while one below the zero line is often treated as a rebound. Looking at the crossover alone can easily lead to misjudgments.
In a sideways market, DIF and DEA become entangled, with bullish and bearish crossovers repeatedly alternating. Crossovers in these conditions have very little value as a reference.
All data merely summarizes past price movements; prices can absolutely move in the opposite direction.
#ETH
When I first started learning MACD, I would jump in as soon as I saw a crossover. It took me a while to understand that a crossover’s significance depends on where it occurs and on the preceding one-sided trend. A bullish crossover above the zero line is often seen as a continuation of the trend, while one below the zero line is often treated as a rebound. Looking at the crossover alone can easily lead to misjudgments.
In a sideways market, DIF and DEA become entangled, with bullish and bearish crossovers repeatedly alternating. Crossovers in these conditions have very little value as a reference.
All data merely summarizes past price movements; prices can absolutely move in the opposite direction.
#ETH