The $BTC 4-hour timeframe has just seen a MACD death cross (below the zero line). Before the crossover, bullish momentum bars lasted for 7 four-hour candles.
It’s easy to be misled by the crossover alone, so it’s best to check these three things one by one:
① Do the bars continue to grow after turning negative?
② Is volume confirming the move?
③ Has the price fallen below the previous support level?
Four-hour signals tend to be short-term, so check them against the daily trend as well. If the move reverses later, how would you respond?
It’s easy to be misled by the crossover alone, so it’s best to check these three things one by one:
① Do the bars continue to grow after turning negative?
② Is volume confirming the move?
③ Has the price fallen below the previous support level?
Four-hour signals tend to be short-term, so check them against the daily trend as well. If the move reverses later, how would you respond?