Regarding the MACD death cross on the $BTW daily chart, we should first clarify its two limitations:
First, it lags. MACD is derived from moving averages, so by the time a death cross appears, the price has often already fallen some distance from its high (24h -33.47%).
Second, it is unreliable in choppy markets. Golden and death crosses can appear repeatedly in a range-bound market, resulting in many false signals.
Before this cross, the counter-direction histogram bars lasted only 11 daily candles—a relatively short time—so watch out for repeated crosses. Also, since it is above the zero line, treat it as a correction for now; it may not be a reversal.
#BTW
First, it lags. MACD is derived from moving averages, so by the time a death cross appears, the price has often already fallen some distance from its high (24h -33.47%).
Second, it is unreliable in choppy markets. Golden and death crosses can appear repeatedly in a range-bound market, resulting in many false signals.
Before this cross, the counter-direction histogram bars lasted only 11 daily candles—a relatively short time—so watch out for repeated crosses. Also, since it is above the zero line, treat it as a correction for now; it may not be a reversal.
#BTW