Technical Notes | $LSK | Daily MACD | Golden Cross Below the Zero Line
First, the definition: MACD was developed by Gerald Appel. Its commonly used settings are 12, 26, and 9. It tracks trend momentum by comparing the difference between the fast and slow EMAs.
A common way to read it: The histogram bars often start shrinking before a crossover appears. Some traders treat this as an early sign of weakening momentum, but this signal is also more prone to failure.
Extreme readings often point to greater volatility. At such times, it is wiser to reduce leverage rather than make a large bet.
First, the definition: MACD was developed by Gerald Appel. Its commonly used settings are 12, 26, and 9. It tracks trend momentum by comparing the difference between the fast and slow EMAs.
A common way to read it: The histogram bars often start shrinking before a crossover appears. Some traders treat this as an early sign of weakening momentum, but this signal is also more prone to failure.
Extreme readings often point to greater volatility. At such times, it is wiser to reduce leverage rather than make a large bet.