Time to eat—today’s little candlestick-chart skit: the $KGEN 4-hour MACD formed a death cross above the zero line, after 19 consecutive bars moving in the opposite direction before the crossover.
When DIF and DEA meet, my fingers immediately start itching to act. Luckily, I checked what they were first.
Seriously, the zero line is where DIF equals 0—that is, where the 12-period EMA and 26-period EMA overlap. When DIF is above the zero line, the fast moving average is above the slow one.
Understanding an indicator helps you avoid being misled by a single number; it doesn’t mean you can use it to predict price moves accurately.
When DIF and DEA meet, my fingers immediately start itching to act. Luckily, I checked what they were first.
Seriously, the zero line is where DIF equals 0—that is, where the 12-period EMA and 26-period EMA overlap. When DIF is above the zero line, the fast moving average is above the slow one.
Understanding an indicator helps you avoid being misled by a single number; it doesn’t mean you can use it to predict price moves accurately.