Overnight chart-watching diary: The $PEPE 4-hour MACD formed a bullish crossover below the zero line, with opposing histogram bars persisting for 15 bars before the crossover.
DIF and DEA crossed paths, and my hands immediately started itching to trade. Luckily, I checked the definitions first.
A quick explainer: DIF (also called the MACD line) = 12-period EMA − 26-period EMA; DEA (also called the signal line) is calculated by taking a 9-period EMA of the DIF.
Comparing multiple indicators is more reliable than looking at just one, but no number of indicators can provide a definitive conclusion.
DIF and DEA crossed paths, and my hands immediately started itching to trade. Luckily, I checked the definitions first.
A quick explainer: DIF (also called the MACD line) = 12-period EMA − 26-period EMA; DEA (also called the signal line) is calculated by taking a 9-period EMA of the DIF.
Comparing multiple indicators is more reliable than looking at just one, but no number of indicators can provide a definitive conclusion.