A friend just asked me: The $AIN 4-hour MACD has formed a golden cross. Is it time to jump in?
I gave him a few straight answers:
1. This golden cross is below the zero line, so it counts as a rebound signal, but it carries less weight than one above the zero line.
2. MACD lags behind the market. By the time the crossover appears, the market has already made a move.
3. Don't look at just one indicator—consider volume, support, and resistance together.
After hearing me out, he said, “So I still have to watch the market myself.” Exactly. Indicators are only there to give you a heads-up.
In volatile markets, manage your risk first.
I gave him a few straight answers:
1. This golden cross is below the zero line, so it counts as a rebound signal, but it carries less weight than one above the zero line.
2. MACD lags behind the market. By the time the crossover appears, the market has already made a move.
3. Don't look at just one indicator—consider volume, support, and resistance together.
After hearing me out, he said, “So I still have to watch the market myself.” Exactly. Indicators are only there to give you a heads-up.
In volatile markets, manage your risk first.
