$LINK 4 hours: MACD formed a death cross below the zero line, with the opposite-direction bars continuing for 7 bars before the crossover.
Hey everyone, what exactly does MACD calculate? Here’s the quick explanation 👇
A golden cross is when DIF crosses above DEA; a death cross is when DIF crosses below DEA. In other words, the histogram bars switch from negative to positive, or from positive to negative.
The more consecutive bars in the opposite direction before the crossover, the clearer the preceding trend appears. This crossover is often considered a slightly more useful reference than one that occurs during choppy trading.
The same readings can mean completely different things in different market conditions, so don’t blindly apply a single rule.
Hey everyone, what exactly does MACD calculate? Here’s the quick explanation 👇
A golden cross is when DIF crosses above DEA; a death cross is when DIF crosses below DEA. In other words, the histogram bars switch from negative to positive, or from positive to negative.
The more consecutive bars in the opposite direction before the crossover, the clearer the preceding trend appears. This crossover is often considered a slightly more useful reference than one that occurs during choppy trading.
The same readings can mean completely different things in different market conditions, so don’t blindly apply a single rule.