A quick note: $CAP — the daily MACD has formed a golden cross above the zero line.
People often ask how to read the MACD. This is how I understand it.
DIF (also called the MACD line) = 12-period EMA − 26-period EMA; DEA (also called the signal line) is calculated by applying a 9-period EMA to the DIF.
In a sideways market, DIF and DEA tend to get tangled up, with golden and death crosses appearing repeatedly. These crossovers have limited value as reference points.
Learning to read indicators is easy. The hard part is sticking to your plan when emotions are running highest.
People often ask how to read the MACD. This is how I understand it.
DIF (also called the MACD line) = 12-period EMA − 26-period EMA; DEA (also called the signal line) is calculated by applying a 9-period EMA to the DIF.
In a sideways market, DIF and DEA tend to get tangled up, with golden and death crosses appearing repeatedly. These crossovers have limited value as reference points.
Learning to read indicators is easy. The hard part is sticking to your plan when emotions are running highest.
