$TAO 4-hour MACD formed a death cross below the zero line, with seven consecutive opposite-direction histogram bars before the crossover.
When I first started using MACD, I would act as soon as I saw a crossover. It took me a while to understand that a crossover’s significance depends on where it occurs and on the one-way movement beforehand. A golden cross above the zero line is often seen as a continuation of the trend, while one below the zero line is more often seen as a rebound. It’s easy to be misled if you focus only on the crossover itself.
In a sideways market, DIF and DEA tend to get tangled up, producing frequent golden and death crosses. These crossovers have limited significance in such conditions.
Calculating position size based on the stop-loss distance is much more reliable than choosing it by gut feel.
#TAO
For record-keeping only, not investment advice.
When I first started using MACD, I would act as soon as I saw a crossover. It took me a while to understand that a crossover’s significance depends on where it occurs and on the one-way movement beforehand. A golden cross above the zero line is often seen as a continuation of the trend, while one below the zero line is more often seen as a rebound. It’s easy to be misled if you focus only on the crossover itself.
In a sideways market, DIF and DEA tend to get tangled up, producing frequent golden and death crosses. These crossovers have limited significance in such conditions.
Calculating position size based on the stop-loss distance is much more reliable than choosing it by gut feel.
#TAO
For record-keeping only, not investment advice.