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MACD Strategy

MACD Center Line Cross over

The MACD indicator stands out as one of the most common tools in cryptocurrency trading. It acts as a momentum oscillator. It also shows some bitcoin trend-following traits.

MACD ranks as a top indicator for crypto technical analysis. It creates signals through crossovers in cryptocurrencies.

The MACD illustrates the coming together and pulling apart of moving averages. This technical indicator is mathematically derived from the analysis of moving averages. Moving Average Convergence/Divergence functions as a trend-following indicator for cryptocurrency markets, revealing the interconnectedness between two distinct moving averages.

One moving average (MA) is based on a shorter period, while the other is based on a longer period of Bitcoin price bars.

MACD for BTCUSD: Bullish and Bearish Signals

MACD Indicator - MACD Technical Indicator Analysis

The MACD crypto indicator centers on zero. Readings above zero signal bullish moves, below bearish.

When Bitcoin is trending up, the shorter MACD line goes up faster than the longer MACD line, creating a gap. Also, if the MACD indicator is above the middle line, the bitcoin trend is still going up, as shown below.

Avoid selling as long as the MACD Bitcoin Indicator remains positioned above the Center Line Mark: this configuration signifies bullish territory, and its instructional significance remains regardless of the indicator's precise movement above the zero center line, as illustrated in the subsequent crypto example.

MACD Bitcoin above Zero Line - MACD Buy and Sell Signals for BTCUSD

MACD Indicator Above Zero Mark - Bullish Signal

In a bitcoin trend where prices are going down, the shorter MACD line drops faster than the longer MACD line, making a space between them. Also, if the indicator is below the middle line, the bitcoin trend is still going down, as shown below.

Don't buy if the MACD Bitcoin Indicator is below the Center Line Mark, because this area means the market is going down. It doesn't matter how it's moving as long as it's below the zero center line mark, like what is shown on the cryptocurrency example below.

MACD Bitcoin Signal Below Zero Line - MACD Bull and Bear Signals

MACD Bitcoin Indicator Below Zero Center Line Mark - Bearish Signal

When the bitcoin trend is about to turn and reverse the MACD lines begin to move closer to each other, thus closing the gap.

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