Let’s discuss the MACD golden cross on the daily chart for $INJ . First, let’s be clear about the indicator’s two limitations:
First, it lags. MACD is calculated using moving averages, so by the time a golden cross appears, the price has usually already risen some way from its low (already up +14.83% over 24h).
Second, it doesn’t work well in choppy markets. In a range-bound market, golden and death crosses can appear repeatedly, creating a lot of noise.
Before this crossover, the opposing histogram bars persisted for 16 daily candles, indicating a reasonably long one-way move. That makes it somewhat more informative than a crossover in choppy trading.
This is not a recommendation. Make your own decisions.
First, it lags. MACD is calculated using moving averages, so by the time a golden cross appears, the price has usually already risen some way from its low (already up +14.83% over 24h).
Second, it doesn’t work well in choppy markets. In a range-bound market, golden and death crosses can appear repeatedly, creating a lot of noise.
Before this crossover, the opposing histogram bars persisted for 16 daily candles, indicating a reasonably long one-way move. That makes it somewhat more informative than a crossover in choppy trading.
This is not a recommendation. Make your own decisions.