Trade Bitcoin Trading

MACD Analysis

The MACD indicator was created by Gerald Appel.

MACD Bitcoin Indicator is one of the simplest and most commonly used indicators available. MACD Bitcoin Indicator is a momentum oscillator with some bitcoin trend following characteristics. The most popular technical analysis of the MACD Bitcoin indicator first computes the difference between two moving averages and represents that as the MACD Bitcoin indicator "Fast" line. A second MACD Bitcoin indicator "Signal" (trigger) line is then derived from the resulting "Fast" line and plotted in the same frame as the MACD Bitcoin indicator "Fast" line. The "standard" MACD values for the "Fast" line are a 12-period exponential moving average and a 26-period exponential moving average MA and a 9-period exponential moving average MA for the MACD Bitcoin Indicator "Signal" line.

Interpretation of MACD Indicator - Bitcoin MACD Analysis

MACD Bitcoin Indicator is widely used as a bitcoin trend following technical indicator & tends to work most effectively when measuring wide swinging cryptocurrency market price movements. There are three basic techniques for using the MACD Bitcoin Indicator to generate trade signals.

MACD Crossover Signals:

1. MACD Bitcoin Indicator Fast line MACD Bitcoin Indicator Signal line Crossover: A buy bitcoin signal forms when the MACD Fast line crosses above the MACD Signal-line and a sell btcusd signal is derived & generated when the MACD Fast line crosses below MACD Signal-line.

2. Fast line / Zero-Level Crossover: - Bitcoin MACD Buy and Sell Bitcoin Signal Indicator When the MACD Fast line crosses above zero center line mark a buy bitcoin signal is given. Alternatively, when the MACD Fast line crosses below zero center line mark a sell bitcoin signal is generated.

MACD Divergence Bitcoin Signal:

Bitcoin divergences between the MACD indicator & bitcoin price can prove to be a very effective bitcoin strategy in spotting potential bitcoin trend reversal and/or bitcoin trend continuation points in bitcoin price movement. There are several types of MACD indicator divergences:

MACD Classic Divergence Trading Setup

  • MACD Bullish Divergence = Lower lows in bitcoin price and higher lows in the MACD indicator
  • MACD Bearish Divergence = Higher highs in bitcoin price and lower highs in the MACD indicator

MACD Hidden Divergence

  • MACD Bullish Divergence = Lower lows in MACD and higher lows in bitcoin price
  • MACD Bearish Divergence = Higher highs in MACD and lower highs in bitcoin price

MACD indicator Over-bought Over-sold Levels:

The MACD can be used to identify potential over-bought & oversold levels in bitcoin price movements. These MACD indicator levels for overbought and oversold conditions are calculated by looking at the gap between the shorter and longer moving averages. If the shorter moving average starts to drift significantly away from the longer one, it could signal that the price of Bitcoin is stretching too far and is likely to revert to more reasonable levels.

Implementation of MACD Indicator

The MACD indicator Fast Line is drawn as a solid blue-line. MACD indicator Signal-line is drawn as a solid red line. A green histogram plot that represents the difference between the MACD FastLine & the MACD Signal Line has also been included to make identifying MACD indicator cross over points easier.

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