$BIRB 4-hour MACD forms a bearish crossover above the zero line, with countertrend bars persisting for 20 bars before the crossover.
A beginner asks: What exactly is MACD calculating?
MACD was developed by Gerald Appel. Its default parameters are 12, 26, and 9, and it uses the difference between the fast and slow EMAs to track trend momentum.
Many people are used to looking at larger and smaller timeframes together: when the daily direction hasn’t changed, countertrend crossovers on the 4-hour chart are often just pullbacks or rebounds.
Don’t disrupt your plan based on a single number, and don’t use borrowed money to validate a reading.
#BIRB
A beginner asks: What exactly is MACD calculating?
MACD was developed by Gerald Appel. Its default parameters are 12, 26, and 9, and it uses the difference between the fast and slow EMAs to track trend momentum.
Many people are used to looking at larger and smaller timeframes together: when the daily direction hasn’t changed, countertrend crossovers on the 4-hour chart are often just pullbacks or rebounds.
Don’t disrupt your plan based on a single number, and don’t use borrowed money to validate a reading.
#BIRB