Just saw: $ADA 4-hour MACD formed a bullish crossover below the zero line.
People often ask what MACD means. This is how I understand it:
DIF (also called the MACD line) = 12-period EMA − 26-period EMA; DEA (also called the signal line) is a 9-period EMA of DIF.
Many people like to look at multiple timeframes together: when the trend on the higher timeframe hasn’t changed, a crossover in the opposite direction on the lower timeframe is often just a correction or a small rebound.
Indicators can fail, so risk management is essential: thinking through what you’ll do if you’re wrong matters more than getting the prediction right.
#ADA
People often ask what MACD means. This is how I understand it:
DIF (also called the MACD line) = 12-period EMA − 26-period EMA; DEA (also called the signal line) is a 9-period EMA of DIF.
Many people like to look at multiple timeframes together: when the trend on the higher timeframe hasn’t changed, a crossover in the opposite direction on the lower timeframe is often just a correction or a small rebound.
Indicators can fail, so risk management is essential: thinking through what you’ll do if you’re wrong matters more than getting the prediction right.
#ADA