Technical Note | $KGEN | 4-Hour MACD | Bearish Crossover Above the Zero Line
Definition: The zero line is where DIF equals 0, meaning the 12-period EMA and the 26-period EMA are equal; DIF above the zero line indicates that the faster moving average is above the longer-term moving average.
Common interpretation: A bullish crossover above the zero line is often seen as a sign that a pullback in an uptrend has come to an end, while a bullish crossover below the zero line is more often viewed as a sign of a rebound.
The same data can mean very different things in different market conditions, so don’t apply any single rule mechanically.
Definition: The zero line is where DIF equals 0, meaning the 12-period EMA and the 26-period EMA are equal; DIF above the zero line indicates that the faster moving average is above the longer-term moving average.
Common interpretation: A bullish crossover above the zero line is often seen as a sign that a pullback in an uptrend has come to an end, while a bullish crossover below the zero line is more often viewed as a sign of a rebound.
The same data can mean very different things in different market conditions, so don’t apply any single rule mechanically.