MACD Analysis Buy and Sell Signals
Since the MACD cryptocurrency indicator uses 26 and 12 Exponential Moving Average to plot, we shall compare these two EMAs with the MACD technical indicator to figure out how these buy & sell cryptocurrency signals are generated.
MACD Indicator - Example of MACD Technical Indicator
The MACD technical indicator is a leading indicator meaning it generates bitcoin signals that are leading compared to bitcoin price action as opposed to lagging indicators that lag behind the bitcoin price.
Buy BTC USD Crypto Currency Trade
A buy bitcoin trade is generated when there is a MACD fast line crosses above the signal line. However, as with any leading indicator these cryptocurrency signals are prone to whip-saws/fake-outs.
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.
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 eliminate the whip saws it's good to wait out for confirmation of sell crypto signal. Confirmation is when two lines cross below the zero mark, when this happens sell generated is a reliable btcusd signal.
In the cryptocurrency example illustrated below, the Moving Averages generated a sell signal confirmed after MACD moved below the zero line at the same time that the MAs Moving Averages gave a cross over bitcoin signal.
Where to Sell using MACD Indicator - Sell Trade Signal
More Lessons and Tutorials & Courses:
- How Do You Analyze/Interpret BTC USD Trendline Trade Signal Analysis?
- MT4 BTCUSD Platform Ichimoku BTCUSD Technical Indicator Download
- How Can You Analyze/Interpret a Bitcoin Trading TutorialTutorial Guide?
- How to Learn BTC/USD Training Guide Tutorial for Beginners Guide Lesson
- How Can You Analyze/Interpret a New Bitcoin Order in MT5 iPad App?
- BTCUSD Cent Lot Definition
- BTCUSD Dark Cloud Candles Trading Analysis
- BTCUSD Retracement Meaning & BTC USD Retracement Definition
- How Do You Set Awesome Oscillator BTC USD Technical Technical Indicator in Trading Chart in MT4 Software Platform?
- How Can You Identify a Double Tops Pattern in Bitcoin Trading?
