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MACD Analysis Buy and Sell Signals

Since the MACD cryptocurrency indicator plots its values based on 12 and 26-period Exponential Moving Averages, we will compare these two EMAs against the MACD technical indicator to accurately determine how the buy and sell cryptocurrency signals are generated.

MACD Buy and Sell Bitcoin Signals Generation BTCUSD Strategies

MACD Indicator - Example of MACD Technical Indicator

MACD leads price moves. It gives bitcoin signals ahead of action. Unlike tools that follow behind.

Buy BTC USD Crypto Currency Trade

A buy signal for Bitcoin comes when the MACD fast line crosses over the signal line. Still, like other early indicators, these crypto alerts can lead to false moves.

To avoid false signals, it's good to wait for proof of buy or sell cryptocurrency signals. The proof of a cryptocurrency signal is when the two lines go above the zero mark: when this happens, the buy signal is a trustworthy bitcoin signal.

In the cryptocurrency example below, the MAs cryptocurrency indicator created a buy btcusd signal before the bitcoin price started going up. But the cryptocurrency buy signal wasn't complete until the MACD moved above the zero line, and the MAs Moving Averages also showed a crossover signal. From what I've seen, it's best to buy after both MACD lines go above the zero line.

Buy Signals from MACD - MACD Strategies for Bitcoin Trades

Where to Buy using MACD Indicator - Buy Signal

Sell Bitcoin Trade

A sell signal for cryptocurrency is generated when the faster MACD line crosses beneath the signal line: nevertheless, similar to buy bitcoin signals, these too are susceptible to whipsaws or false breakouts.

To mitigate premature reversals (whipsaws), it is advantageous to await confirmation for a sell signal in cryptocurrency. Confirmation is established when both lines cross beneath the zero line: only when this occurs is the resulting sell signal a dependable indication for btcusd trading.

In the cryptocurrency scenario illustrated below, the Moving Averages generated a sell signal, which was corroborated when the MACD dropped below the zero line concurrently with the MAs Moving Averages producing a crossover indication for bitcoin.

Sell Signals from MACD - Generate BTCUSD Signals with MACD

Where to Sell using MACD Indicator - Sell Trade Signal

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