Let's talk about this MACD golden cross at $DOGE 4 hours. First, let's be clear about two shortcomings of the indicator:
First, lag. MACD is derived from moving averages, so by the time a golden cross appears, the price has often already moved some distance from its low (up 1.2% in 24h).
Second, it doesn't work well in choppy markets. In a sideways market, golden and death crosses can appear repeatedly, producing plenty of false signals.
Before this cross, the opposite histogram bars lasted for only 10 four-hour candles—a relatively short period—so watch out for repeated crossovers. Also, since it's below the zero line, treat it as a rebound for now.
#DOGE
First, lag. MACD is derived from moving averages, so by the time a golden cross appears, the price has often already moved some distance from its low (up 1.2% in 24h).
Second, it doesn't work well in choppy markets. In a sideways market, golden and death crosses can appear repeatedly, producing plenty of false signals.
Before this cross, the opposite histogram bars lasted for only 10 four-hour candles—a relatively short period—so watch out for repeated crossovers. Also, since it's below the zero line, treat it as a rebound for now.
#DOGE