$JCT The daily MACD forms a bullish crossover above the zero line, after 7 consecutive histogram bars moving in the opposite direction before the crossover.
Let’s use this number to break down the MACD.
A bullish crossover occurs when the DIF crosses above the DEA; a bearish crossover occurs when the DIF crosses below the DEA—in other words, when the histogram switches from negative to positive or from positive to negative.
The MACD is better at confirming direction in a one-way market than at pinpointing specific highs and lows.
Extreme readings often come with greater volatility. At times like these, it’s better to reduce your position rather than make a heavy bet.
#JCT
Let’s use this number to break down the MACD.
A bullish crossover occurs when the DIF crosses above the DEA; a bearish crossover occurs when the DIF crosses below the DEA—in other words, when the histogram switches from negative to positive or from positive to negative.
The MACD is better at confirming direction in a one-way market than at pinpointing specific highs and lows.
Extreme readings often come with greater volatility. At times like these, it’s better to reduce your position rather than make a heavy bet.
#JCT