Let's talk about this MACD golden cross on $PEPE 4 hours. First, let's be clear about two limitations of the indicator:
First, it lags. 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 3.62% in 24 hours).
Second, it struggles in choppy markets. In a range-bound market, golden and death crosses can occur repeatedly, and many are false signals.
Before this crossover, the opposite histogram bars persisted for 15 four-hour candles, suggesting the trend had some length to it. That makes this signal a little cleaner than one in a sideways market. And since it’s below the zero line, treat it as a rebound for now.
Stay level-headed. Don’t get carried away.
First, it lags. 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 3.62% in 24 hours).
Second, it struggles in choppy markets. In a range-bound market, golden and death crosses can occur repeatedly, and many are false signals.
Before this crossover, the opposite histogram bars persisted for 15 four-hour candles, suggesting the trend had some length to it. That makes this signal a little cleaner than one in a sideways market. And since it’s below the zero line, treat it as a rebound for now.
Stay level-headed. Don’t get carried away.