A friend just asked me: “$AIN ’s daily MACD has formed a death cross. Should I get out?”
I replied with a few honest thoughts:
1. This is a death cross above the zero line, which means upward momentum is slowing—not necessarily that the trend is turning downward.
2. MACD lags behind. By the time the lines cross, the market has already moved for a while.
3. Don’t just look at one indicator. Consider volume, support, and resistance together.
He thought about it and said, “After all that, I still have to make my own judgment.” Exactly. Indicators are just a heads-up.
Don’t treat this as a basis for trading decisions.
I replied with a few honest thoughts:
1. This is a death cross above the zero line, which means upward momentum is slowing—not necessarily that the trend is turning downward.
2. MACD lags behind. By the time the lines cross, the market has already moved for a while.
3. Don’t just look at one indicator. Consider volume, support, and resistance together.
He thought about it and said, “After all that, I still have to make my own judgment.” Exactly. Indicators are just a heads-up.
Don’t treat this as a basis for trading decisions.
