Let’s talk about this MACD golden cross at $ZEC 4 hours. First, let’s clarify its two limitations:
First, it lags. MACD is calculated using moving averages, so by the time a golden cross appears, the price has usually already moved some distance from its low (up 3.26% in 24h).
Second, it’s unreliable in choppy markets. In a range-bound market, golden and death crosses can keep appearing back and forth, creating a lot of noise.
Before this crossover, the opposing histogram bars lasted only 9 four-hour candlesticks, which is 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.
First, it lags. MACD is calculated using moving averages, so by the time a golden cross appears, the price has usually already moved some distance from its low (up 3.26% in 24h).
Second, it’s unreliable in choppy markets. In a range-bound market, golden and death crosses can keep appearing back and forth, creating a lot of noise.
Before this crossover, the opposing histogram bars lasted only 9 four-hour candlesticks, which is 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.