$AAVE ｜4-hour MACD｜Bullish crossover below the zero line
Before discussing capital flows, let's first understand MACD.
The same MACD settings can mean quite different things on different timeframes: crossovers happen more often on the 4-hour chart and less often on the daily chart, but they carry greater significance there.
A crossover is just a signal in itself. Whether the price breaks through the nearest support level and whether trading volume confirms the move are often used for further validation.
Understanding an indicator helps you avoid being spooked by a single number; it isn't a tool for pinpointing tops and bottoms.
Before discussing capital flows, let's first understand MACD.
The same MACD settings can mean quite different things on different timeframes: crossovers happen more often on the 4-hour chart and less often on the daily chart, but they carry greater significance there.
A crossover is just a signal in itself. Whether the price breaks through the nearest support level and whether trading volume confirms the move are often used for further validation.
Understanding an indicator helps you avoid being spooked by a single number; it isn't a tool for pinpointing tops and bottoms.