A friend asked me today: “The MACD just formed a golden cross on the $PEPE 4-hour chart. Is it time to get in?”
I gave him three honest thoughts:
1. This is a golden cross below the zero line, so it’s more of a rebound signal and carries less weight than one above the zero line.
2. MACD lags. By the time it crosses, the market has already made part of its move.
3. Don’t look at this indicator alone—also consider volume, support, and resistance.
After hearing me out, he said, “So after all that, I still have to make the call myself.” Exactly. Indicators are just a heads-up.
I gave him three honest thoughts:
1. This is a golden cross below the zero line, so it’s more of a rebound signal and carries less weight than one above the zero line.
2. MACD lags. By the time it crosses, the market has already made part of its move.
3. Don’t look at this indicator alone—also consider volume, support, and resistance.
After hearing me out, he said, “So after all that, I still have to make the call myself.” Exactly. Indicators are just a heads-up.