Let’s discuss this MACD death cross on the $AVAX 4-hour timeframe. First, it’s important to understand two limitations of the indicator:
First, lag. MACD is calculated from moving averages, so by the time a death cross appears, the price has often already fallen some distance from its high (24h: -3.38%).
Second, it struggles in choppy markets. In a range-bound market, golden crosses and death crosses can appear repeatedly, creating plenty of noise.
Before this crossover, the opposing histogram bars lasted only 10 4-hour candles—a relatively short period—so beware of repeated crossovers.
#AVAX
First, lag. MACD is calculated from moving averages, so by the time a death cross appears, the price has often already fallen some distance from its high (24h: -3.38%).
Second, it struggles in choppy markets. In a range-bound market, golden crosses and death crosses can appear repeatedly, creating plenty of noise.
Before this crossover, the opposing histogram bars lasted only 10 4-hour candles—a relatively short period—so beware of repeated crossovers.
#AVAX