A friend just asked me: “$ZEREBRO ’s daily MACD has formed a golden cross. Is it time to get in?”
I gave him three straight answers:
1. This is a golden cross above the zero line, so it’s a trend-following signal with some substance;
2. MACD is a lagging indicator, so by the time the crossover appears, the market has already moved for a while;
3. Don’t focus on this one indicator alone—volume and key levels matter too.
After hearing me out, he said, “So after all that, I still have to make the call myself.” Exactly. Indicators are just there to give you a heads-up.
I gave him three straight answers:
1. This is a golden cross above the zero line, so it’s a trend-following signal with some substance;
2. MACD is a lagging indicator, so by the time the crossover appears, the market has already moved for a while;
3. Don’t focus on this one indicator alone—volume and key levels matter too.
After hearing me out, he said, “So after all that, I still have to make the call myself.” Exactly. Indicators are just there to give you a heads-up.