Let's talk about this MACD death cross on $TRUTH 4-hour chart. First, let's clarify two shortcomings of the indicator:
First, lag. MACD is calculated using moving averages, so by the time a death cross appears, the price has usually already fallen some way from its high (24h -26.06%).
Second, it struggles in choppy markets. Golden crosses and death crosses can appear repeatedly in sideways markets, producing quite a few false signals.
Before this crossover, the opposite-direction histogram bars persisted for 24 four-hour candles, indicating a reasonably long one-way move. That makes it somewhat more meaningful than a crossover in a sideways market. Also, since it occurred above the zero line, treat it as a pullback for now; it doesn't necessarily signal a trend reversal.
#TRUTH
First, lag. MACD is calculated using moving averages, so by the time a death cross appears, the price has usually already fallen some way from its high (24h -26.06%).
Second, it struggles in choppy markets. Golden crosses and death crosses can appear repeatedly in sideways markets, producing quite a few false signals.
Before this crossover, the opposite-direction histogram bars persisted for 24 four-hour candles, indicating a reasonably long one-way move. That makes it somewhat more meaningful than a crossover in a sideways market. Also, since it occurred above the zero line, treat it as a pullback for now; it doesn't necessarily signal a trend reversal.
#TRUTH