Let’s talk about this $CT 4-hour MACD golden cross. First, let’s clarify two shortcomings of the indicator:
First, lag. MACD is calculated from moving averages, so by the time a golden cross appears, the price has usually already moved some distance off its low (up 14.81% over 24h).
Second, it fails in choppy markets. In sideways markets, golden and death crosses appear repeatedly, generating many false signals.
Before this crossover, the opposing histogram bars persisted for 12 four-hour candles, indicating a reasonably long one-way move and making this crossover cleaner than one in a sideways market. Also, since it’s below the zero line, treat it as a rebound for now.
First, lag. MACD is calculated from moving averages, so by the time a golden cross appears, the price has usually already moved some distance off its low (up 14.81% over 24h).
Second, it fails in choppy markets. In sideways markets, golden and death crosses appear repeatedly, generating many false signals.
Before this crossover, the opposing histogram bars persisted for 12 four-hour candles, indicating a reasonably long one-way move and making this crossover cleaner than one in a sideways market. Also, since it’s below the zero line, treat it as a rebound for now.