Let's discuss this MACD golden cross on the $INJ 4-hour timeframe. First, we need to be clear about its two limitations:
First, lag. MACD is calculated from moving averages, so by the time a golden cross appears, the price has often already moved some distance from its low (already up +4.96% over 24h).
Second, it can fail in choppy markets. In a sideways market, golden and death crosses can occur repeatedly, producing plenty of false signals.
Before this crossover, the opposing histogram bars continued for 20 four-hour candlesticks. The one-way move had some length to it, so this crossover is somewhat cleaner than one in a choppy market.
#INJ
First, lag. MACD is calculated from moving averages, so by the time a golden cross appears, the price has often already moved some distance from its low (already up +4.96% over 24h).
Second, it can fail in choppy markets. In a sideways market, golden and death crosses can occur repeatedly, producing plenty of false signals.
Before this crossover, the opposing histogram bars continued for 20 four-hour candlesticks. The one-way move had some length to it, so this crossover is somewhat cleaner than one in a choppy market.
#INJ