Technical Note | $PAXG | 4-Hour MACD | Death Cross Above the Zero Line
First, the definition: MACD was originally developed by Gerald Appel. Its commonly used settings are 12, 26, and 9, and it tracks trend momentum through the difference between the fast and slow EMAs.
Next, how to read it: In a sideways market, DIF and DEA tend to intertwine, with golden crosses and death crosses occurring frequently in alternation. In such conditions, these crosses have little significance as signals.
Indicators may be inaccurate, but stop-losses are essential: deciding in advance what to do if your view is wrong matters more than getting the prediction right.
First, the definition: MACD was originally developed by Gerald Appel. Its commonly used settings are 12, 26, and 9, and it tracks trend momentum through the difference between the fast and slow EMAs.
Next, how to read it: In a sideways market, DIF and DEA tend to intertwine, with golden crosses and death crosses occurring frequently in alternation. In such conditions, these crosses have little significance as signals.
Indicators may be inaccurate, but stop-losses are essential: deciding in advance what to do if your view is wrong matters more than getting the prediction right.