Indicator Notes | $PAXG | Daily MACD | Golden Cross Below the Zero Line
First, the definition: The length of the histogram bars represents the distance between DIF and DEA. If each bar is larger than the previous one, momentum in the current direction is increasing; if they get shorter, momentum is fading.
A common way to read it: Many people also watch for bearish and bullish divergences. If the price reaches a new high but MACD doesn't follow, or the price reaches a new low but MACD doesn't follow, this is often seen as a sign that momentum is weakening.
If you're using leverage, first work out whether you can withstand the worst-case outcome, then see what the indicators are saying.
First, the definition: The length of the histogram bars represents the distance between DIF and DEA. If each bar is larger than the previous one, momentum in the current direction is increasing; if they get shorter, momentum is fading.
A common way to read it: Many people also watch for bearish and bullish divergences. If the price reaches a new high but MACD doesn't follow, or the price reaches a new low but MACD doesn't follow, this is often seen as a sign that momentum is weakening.
If you're using leverage, first work out whether you can withstand the worst-case outcome, then see what the indicators are saying.