A friend asked me today: “The MACD has formed a death cross on the $TAO 4-hour chart. Should I get out?”
I gave him a few straight answers:
1. This is a death cross below the zero line, which means the weakness hasn’t changed and the rebound has fizzled out again;
2. MACD lags behind—by the time it crosses, the price has already made a move;
3. Don’t look at this indicator alone; you also need to watch trading volume and key levels.
He thought it over and said, “After all that, I still have to make the call myself.” Exactly. Indicators are only there to give you a heads-up.
I gave him a few straight answers:
1. This is a death cross below the zero line, which means the weakness hasn’t changed and the rebound has fizzled out again;
2. MACD lags behind—by the time it crosses, the price has already made a move;
3. Don’t look at this indicator alone; you also need to watch trading volume and key levels.
He thought it over and said, “After all that, I still have to make the call myself.” Exactly. Indicators are only there to give you a heads-up.