$KGEN 4-hour MACD death cross
Don't rush—understand MACD first
The zero line is the line where DIF = 0, meaning the 12-period EMA and 26-period EMA are equal. When DIF is above the zero line, the short-term moving average is above the long-term moving average.
Many people also look for bearish and bullish divergence: the price makes a new high but MACD does not, or the price makes a new low but MACD does not. These are often seen as signs that momentum is fading.
The point of understanding an indicator is to avoid being misled by a single number, not to use it to predict tops and bottoms.
Don't rush—understand MACD first
The zero line is the line where DIF = 0, meaning the 12-period EMA and 26-period EMA are equal. When DIF is above the zero line, the short-term moving average is above the long-term moving average.
Many people also look for bearish and bullish divergence: the price makes a new high but MACD does not, or the price makes a new low but MACD does not. These are often seen as signs that momentum is fading.
The point of understanding an indicator is to avoid being misled by a single number, not to use it to predict tops and bottoms.