The $BAT 4-hour MACD formed a bullish crossover above the zero line, after 8 consecutive opposite-direction bars before the crossover.
A beginner asks: How do you read MACD golden crosses and death crosses?
DIF (also called the MACD line) = 12-period EMA − 26-period EMA; DEA (also called the signal line) is calculated by applying a 9-period EMA to DIF.
A golden cross above the zero line is often seen as a sign that a pullback within an uptrend has run its course, while a golden cross below the zero line is more often seen as a sign of a rebound.
Rare readings usually signal more intense volatility. In these situations, it’s better to reduce your position rather than make a big bet.
A beginner asks: How do you read MACD golden crosses and death crosses?
DIF (also called the MACD line) = 12-period EMA − 26-period EMA; DEA (also called the signal line) is calculated by applying a 9-period EMA to DIF.
A golden cross above the zero line is often seen as a sign that a pullback within an uptrend has run its course, while a golden cross below the zero line is more often seen as a sign of a rebound.
Rare readings usually signal more intense volatility. In these situations, it’s better to reduce your position rather than make a big bet.