A note: On the $BNB 4-hour chart, the MACD made a bullish crossover above the zero line, after 8 consecutive histogram bars moving in the opposite direction.
People often ask what MACD means. Here’s how I understand it.
The histogram is the difference between DIF and DEA. Many charting platforms in China also multiply it by 2. The moment the histogram turns from negative to positive is exactly when DIF crosses above DEA.
In a sideways market, DIF and DEA tend to tangle and cross back and forth, with bullish and bearish crossovers alternating frequently. These crosses have limited value as signals.
Indicators can fail, so don’t skip your stop-loss: deciding in advance what to do if you’re wrong matters more than getting the prediction right.
People often ask what MACD means. Here’s how I understand it.
The histogram is the difference between DIF and DEA. Many charting platforms in China also multiply it by 2. The moment the histogram turns from negative to positive is exactly when DIF crosses above DEA.
In a sideways market, DIF and DEA tend to tangle and cross back and forth, with bullish and bearish crossovers alternating frequently. These crosses have limited value as signals.
Indicators can fail, so don’t skip your stop-loss: deciding in advance what to do if you’re wrong matters more than getting the prediction right.