Chart Notes｜$IDOL ｜Daily MACD｜Bearish crossover above the zero line
Definition: MACD is calculated from moving averages, so it inherently lags: by the time a crossover occurs, the price has usually already made a significant move.
How to read it: Many people also look for bearish and bullish divergences: the price makes a new high but MACD doesn't, or the price makes a new low but MACD doesn't. These are often seen as signs of weakening momentum.
Calculating your position size based on where you place your stop-loss is much more reliable than choosing one by feel.
#IDOL
Don't use these as a basis for trading decisions.
Definition: MACD is calculated from moving averages, so it inherently lags: by the time a crossover occurs, the price has usually already made a significant move.
How to read it: Many people also look for bearish and bullish divergences: the price makes a new high but MACD doesn't, or the price makes a new low but MACD doesn't. These are often seen as signs of weakening momentum.
Calculating your position size based on where you place your stop-loss is much more reliable than choosing one by feel.
#IDOL
Don't use these as a basis for trading decisions.
