Technical Note | $ZEC | 4-Hour MACD | Bearish Crossover Above the Zero Line
First, the definitions: DIF (also called the MACD line) = 12-period EMA − 26-period EMA; DEA (also called the signal line) is the 9-period EMA of DIF.
How to read it: Many people also look for bearish and bullish divergences: when the price makes a new high but the MACD does not, or the price makes a new low but the MACD does not, this is often seen as a sign of fading momentum.
Sizing your position based on the stop-loss distance is much more reliable than choosing a position size by gut feel.
First, the definitions: DIF (also called the MACD line) = 12-period EMA − 26-period EMA; DEA (also called the signal line) is the 9-period EMA of DIF.
How to read it: Many people also look for bearish and bullish divergences: when the price makes a new high but the MACD does not, or the price makes a new low but the MACD does not, this is often seen as a sign of fading momentum.
Sizing your position based on the stop-loss distance is much more reliable than choosing a position size by gut feel.