$WLD ｜4-hour MACD｜Bullish crossover below the zero line
Before discussing capital, let’s first understand MACD.
MACD was first introduced by Gerald Appel. Its default settings are 12, 26, and 9, and it uses the distance between the fast and slow EMAs to gauge price momentum.
The histogram often starts shrinking before a crossover occurs. Some traders use this as an early signal that momentum is weakening, but it is also more prone to false signals.
Sizing positions based on the stop-loss distance is far more reliable than choosing a position size on a whim.
This is purely my personal opinion and should not be used as a basis for trading.
Before discussing capital, let’s first understand MACD.
MACD was first introduced by Gerald Appel. Its default settings are 12, 26, and 9, and it uses the distance between the fast and slow EMAs to gauge price momentum.
The histogram often starts shrinking before a crossover occurs. Some traders use this as an early signal that momentum is weakening, but it is also more prone to false signals.
Sizing positions based on the stop-loss distance is far more reliable than choosing a position size on a whim.
This is purely my personal opinion and should not be used as a basis for trading.