$AKE The daily MACD formed a bullish crossover below the zero line.
Let’s use this data to talk about MACD.
The height of the bars reflects the gap between DIF and DEA. Bars getting longer one by one indicate that momentum in the current direction is strengthening, while shorter bars indicate it is weakening.
The bars often start getting shorter before a crossover occurs. Some people use this as an early sign that momentum is weakening, but this signal is also more prone to failure.
Indicators can be inaccurate, so risk management should never be overlooked: deciding in advance what to do if your judgment is wrong is more important than guessing correctly.
Let’s use this data to talk about MACD.
The height of the bars reflects the gap between DIF and DEA. Bars getting longer one by one indicate that momentum in the current direction is strengthening, while shorter bars indicate it is weakening.
The bars often start getting shorter before a crossover occurs. Some people use this as an early sign that momentum is weakening, but this signal is also more prone to failure.
Indicators can be inaccurate, so risk management should never be overlooked: deciding in advance what to do if your judgment is wrong is more important than guessing correctly.