Let’s discuss the MACD death cross on the $PAXG daily chart. First, let’s be clear about its two limitations:
First, it lags. MACD is derived from moving averages, so by the time a death cross appears, the price has often already moved some distance off its high (24h -2.32%).
Second, it’s prone to whipsaws. In a sideways market, golden crosses and death crosses can appear repeatedly, creating a lot of noise.
Before this crossover, the opposing histogram bars lasted for 13 daily candles. That’s not a short one-way move, so it’s somewhat more meaningful than a crossover in a sideways market.
#PAXG
First, it lags. MACD is derived from moving averages, so by the time a death cross appears, the price has often already moved some distance off its high (24h -2.32%).
Second, it’s prone to whipsaws. In a sideways market, golden crosses and death crosses can appear repeatedly, creating a lot of noise.
Before this crossover, the opposing histogram bars lasted for 13 daily candles. That’s not a short one-way move, so it’s somewhat more meaningful than a crossover in a sideways market.
#PAXG
