Make a note: The $ARIA 4-hour MACD formed a death cross above the zero line.
People often ask how to read the MACD, so here’s my take.
The histogram is the difference between DIF and DEA; some software also multiplies it by 2. The moment the histogram turns from negative to positive is when DIF crosses above DEA.
The histogram usually starts shrinking before the crossover. Some people treat this as an early sign of weakening momentum, but this signal also tends to fail more often.
The point of understanding this indicator is to avoid being misled by a single number, not to use it to predict tops and bottoms.
NFA; do your own research.
People often ask how to read the MACD, so here’s my take.
The histogram is the difference between DIF and DEA; some software also multiplies it by 2. The moment the histogram turns from negative to positive is when DIF crosses above DEA.
The histogram usually starts shrinking before the crossover. Some people treat this as an early sign of weakening momentum, but this signal also tends to fail more often.
The point of understanding this indicator is to avoid being misled by a single number, not to use it to predict tops and bottoms.
NFA; do your own research.