Let’s talk about this MACD death cross on the $DOGE 4-hour chart. First, let’s clarify its two drawbacks:
First, lag. MACD is derived from moving averages, so by the time a death cross appears, the price has often already moved some distance from its high (-2.72% over 24h).
Second, it doesn’t work well in choppy markets. In a sideways market, golden and death crosses keep appearing back and forth, producing many false signals.
Before this crossover, the opposing histogram bars persisted for 20 four-hour candles. The trend leg wasn’t particularly short, so this crossover is cleaner than one in a choppy market. It’s also above the zero line, so treat it as a correction for now; it may not be a reversal.
#DOGE
First, lag. MACD is derived from moving averages, so by the time a death cross appears, the price has often already moved some distance from its high (-2.72% over 24h).
Second, it doesn’t work well in choppy markets. In a sideways market, golden and death crosses keep appearing back and forth, producing many false signals.
Before this crossover, the opposing histogram bars persisted for 20 four-hour candles. The trend leg wasn’t particularly short, so this crossover is cleaner than one in a choppy market. It’s also above the zero line, so treat it as a correction for now; it may not be a reversal.
#DOGE