Let's talk about this MACD death cross at $ERA 4 hours. First, we should be clear about its two limitations:
First, it lags. MACD is calculated from moving averages, so by the time a death cross appears, the price has often already moved some distance from its high (24h -5.66%).
Second, it struggles in choppy markets. In a range, golden crosses and death crosses can appear repeatedly, producing many false signals.
Before this crossover, the opposing histogram bars persisted for 14 four-hour candles. The trend leg wasn't particularly short, so this signal is somewhat more informative than a crossover in a sideways market. Also, since it occurred above the zero line, treat it as a pullback for now—not necessarily a trend reversal.
First, it lags. MACD is calculated from moving averages, so by the time a death cross appears, the price has often already moved some distance from its high (24h -5.66%).
Second, it struggles in choppy markets. In a range, golden crosses and death crosses can appear repeatedly, producing many false signals.
Before this crossover, the opposing histogram bars persisted for 14 four-hour candles. The trend leg wasn't particularly short, so this signal is somewhat more informative than a crossover in a sideways market. Also, since it occurred above the zero line, treat it as a pullback for now—not necessarily a trend reversal.