$FIL 4-hour MACD forms a golden cross below the zero line.
A beginner asks the million-dollar question: What exactly is MACD calculating?
The zero line is where DIF equals 0, meaning the 12-period EMA and 26-period EMA are equal. When DIF is above the zero line, the fast moving average is above the slow moving average.
A death cross above the zero line is often seen as a sign of weakening upward momentum, but it doesn't necessarily mean the trend has reversed. A death cross below the zero line is more often seen as a sign that the downtrend will continue.
Comparing multiple data points is more reliable than looking at just one, but even more indicators can't provide a definitive conclusion.
Any view can be wrong at any time. Please manage your own risk.
A beginner asks the million-dollar question: What exactly is MACD calculating?
The zero line is where DIF equals 0, meaning the 12-period EMA and 26-period EMA are equal. When DIF is above the zero line, the fast moving average is above the slow moving average.
A death cross above the zero line is often seen as a sign of weakening upward momentum, but it doesn't necessarily mean the trend has reversed. A death cross below the zero line is more often seen as a sign that the downtrend will continue.
Comparing multiple data points is more reliable than looking at just one, but even more indicators can't provide a definitive conclusion.
Any view can be wrong at any time. Please manage your own risk.