$PEPE Daily MACD forms a bearish crossover above the zero line, with opposing histogram bars persisting for 22 bars before the crossover.
When I first started using MACD, I got excited whenever I saw a golden cross or a death cross. It took me a while to understand that the significance of a crossover depends on its position and the preceding trend. A golden cross above the zero line is often seen as the end of a pullback, while one below the zero line is often viewed as a rebound. Looking at the crossover alone can easily lead to misjudgments.
Many people compare two timeframes: when the daily trend hasn’t changed, a countertrend crossover on a shorter timeframe is often just a correction or a rebound.
The point of understanding an indicator is to avoid being intimidated by the numbers, not to use it to predict whether prices will rise or fall.
When I first started using MACD, I got excited whenever I saw a golden cross or a death cross. It took me a while to understand that the significance of a crossover depends on its position and the preceding trend. A golden cross above the zero line is often seen as the end of a pullback, while one below the zero line is often viewed as a rebound. Looking at the crossover alone can easily lead to misjudgments.
Many people compare two timeframes: when the daily trend hasn’t changed, a countertrend crossover on a shorter timeframe is often just a correction or a rebound.
The point of understanding an indicator is to avoid being intimidated by the numbers, not to use it to predict whether prices will rise or fall.