$ARIA 4 has just formed a MACD death cross on the hourly chart (above the zero line). Before the crossover, bullish momentum bars persisted for 26 four-hour candlesticks.
It’s easy to be misled by looking at the crossover alone. Check these three things in order:
① After the histogram turns negative, are the bars getting longer one by one?
② Is trading volume confirming the move?
③ Will the price break below the recent low?
Four-hour signals tend to be short-term, so it’s best to compare them with the daily trend as well. Could the market reverse next?
There’s considerable volatility, so size your position according to your risk tolerance.
It’s easy to be misled by looking at the crossover alone. Check these three things in order:
① After the histogram turns negative, are the bars getting longer one by one?
② Is trading volume confirming the move?
③ Will the price break below the recent low?
Four-hour signals tend to be short-term, so it’s best to compare them with the daily trend as well. Could the market reverse next?
There’s considerable volatility, so size your position according to your risk tolerance.