$BTW On the daily chart, the MACD forms a death cross above the zero line, after 11 consecutive histogram bars pointing in the opposite direction.
When I first started using MACD, I would act as soon as I saw a golden cross or death cross. Only later did I realize that the significance of a crossover depends on where it occurs and on the preceding trend. A golden cross above the zero line is often seen as the end of a pullback, while one below the zero line is more often treated as a rebound. Looking at the crossover alone can easily lead to misjudgments.
A crossover by itself is just a signal. Whether the price can break through the most recent resistance level and whether trading volume confirms the move are often used for further confirmation.
Don’t place an order at the most volatile moment. Wait for the candlestick to close and settle before taking another look.
#BTW
When I first started using MACD, I would act as soon as I saw a golden cross or death cross. Only later did I realize that the significance of a crossover depends on where it occurs and on the preceding trend. A golden cross above the zero line is often seen as the end of a pullback, while one below the zero line is more often treated as a rebound. Looking at the crossover alone can easily lead to misjudgments.
A crossover by itself is just a signal. Whether the price can break through the most recent resistance level and whether trading volume confirms the move are often used for further confirmation.
Don’t place an order at the most volatile moment. Wait for the candlestick to close and settle before taking another look.
#BTW