A friend asked me today: “The MACD formed a death cross on the $LYN 4-hour chart. Should I get out?”
I gave him three honest answers:
1. This death cross is above the zero line, which means the uptrend is slowing—not necessarily turning into a downtrend.
2. MACD lags behind. By the time it crosses, prices have often already moved quite a bit.
3. Don’t look at this indicator alone; consider trading volume, support, and resistance together.
He thought about it and said, “So I still have to watch the market myself.” Exactly. Indicators are just a heads-up.
These are purely personal opinions and should not be used as a basis for trading decisions.
I gave him three honest answers:
1. This death cross is above the zero line, which means the uptrend is slowing—not necessarily turning into a downtrend.
2. MACD lags behind. By the time it crosses, prices have often already moved quite a bit.
3. Don’t look at this indicator alone; consider trading volume, support, and resistance together.
He thought about it and said, “So I still have to watch the market myself.” Exactly. Indicators are just a heads-up.
These are purely personal opinions and should not be used as a basis for trading decisions.