Make a note: $JCT — the daily MACD formed a death cross above the zero line.
People often ask what MACD means. This is how I understand it.
MACD is derived from moving averages, so it inherently lags: by the time a golden cross or death cross appears, the price has usually already made a move.
The longer the histogram bars in the opposite direction persist before the crossover, the clearer the preceding one-way move. This crossover is often considered somewhat more informative than one that occurs in a sideways market.
With leveraged trading, first work out whether you can withstand the worst-case scenario, then consider what the signal is telling you.
People often ask what MACD means. This is how I understand it.
MACD is derived from moving averages, so it inherently lags: by the time a golden cross or death cross appears, the price has usually already made a move.
The longer the histogram bars in the opposite direction persist before the crossover, the clearer the preceding one-way move. This crossover is often considered somewhat more informative than one that occurs in a sideways market.
With leveraged trading, first work out whether you can withstand the worst-case scenario, then consider what the signal is telling you.
