A friend just asked me: “The daily MACD for $JCT has formed a death cross. Should I get out?”
I replied with three honest thoughts:
1. This death cross is above the zero line, which means the uptrend is slowing down—not necessarily that it’s about to reverse;
2. MACD is a lagging indicator. By the time it crosses, the market has already made part of its move;
3. Don’t focus on just this one indicator—watch trading volume and key levels too.
After hearing that, he said, “So I still have to watch the market myself.” Exactly. Indicators are just a heads-up.
#JCT
I replied with three honest thoughts:
1. This death cross is above the zero line, which means the uptrend is slowing down—not necessarily that it’s about to reverse;
2. MACD is a lagging indicator. By the time it crosses, the market has already made part of its move;
3. Don’t focus on just this one indicator—watch trading volume and key levels too.
After hearing that, he said, “So I still have to watch the market myself.” Exactly. Indicators are just a heads-up.
#JCT