#6 BTC全民空投限时派送中# #白宫加密报告发布# MACD (Moving Average Convergence Divergence) is a commonly used trend and Momentum Index in Candlestick analysis. By calculating the difference between short-term and long-term moving averages, it reflects the strength of market trends and potential reversal signals. The specific usage methods can be divided into the following core points:

1. The composition of the MACD indicator

The MACD indicator consists of three parts and needs to be observed in combination:

- MACD Histogram: Located above and below the zero axis, it reflects the distance (difference) between the short-term and long-term moving averages, with the length of the histogram representing the strength of the trend momentum.

- MACD Line (DIF Line): The difference line between the short-term moving average (usually 12-day EMA) and the long-term moving average (usually 26-day EMA).

- Signal Line (DEA Line): The moving average of the MACD line (usually 9-day EMA), used to smooth the DIF line and assist in judging the validity of the signal.

2. Core Usage Methods

1. Trend determination: set direction above and below the zero line.

- Above the zero axis: The MACD line and the signal line are running above the zero axis, and the histogram is red, indicating that the market is in an upward trend with bullish momentum prevailing. At this time, priority can be given to looking for long opportunities or holding positions.

- Below the zero axis: The MACD line and the signal line are operating below the zero axis, with green histogram bars, indicating that the market is in a downward trend, with bearish momentum prevailing. At this time, caution is needed when going long, and one may look for shorting opportunities or choose to observe.

- Zero Axis Crossover: When the MACD line crosses above the zero axis from below ("crosses above the zero axis"), it is considered a signal that the trend is shifting from bearish to bullish; when it crosses below the zero axis from above ("crosses below the zero axis"), it is considered a signal that the trend is shifting from bullish to bearish.

2. Trading Signals: Golden Cross and Death Cross

- Golden Cross (Buy Signal):
When the MACD line (DIF) crosses above the signal line (DEA) from below, and both are below the zero line or approaching the zero line from below, a golden cross is formed. If this is accompanied by the histogram changing from green to red and the momentum increasing, the signal is more reliable and is usually viewed as a short-term buying opportunity.
For example, in a downtrend, the appearance of a golden cross may indicate a rebound or reversal.

- Dead Cross (Sell Signal):
When the MACD line (DIF) crosses the signal line (DEA) from above to below, and both are above the zero axis or approaching the zero axis from above, a death cross is formed. If accompanied by the histogram changing from red to green and momentum increasing, the signal is more reliable, usually regarded as a short-term selling opportunity.
For example, in an uptrend, the death cross may indicate a pullback or reversal.

3. Divergence Signal: Trend Reversal Warning

Divergence refers to the inconsistency between the price and the MACD indicator trend, indicating that a trend may soon reverse, and it is divided into two types:

- Top Divergence:
The price has reached a new high, but the MACD line has not reached a new high (and has even declined), and the histogram has shortened. This indicates that bullish momentum is weakening, the upward trend may be peaking, and there is a need to be vigilant about the risk of a decline.
For example: The price of Bitcoin has risen to a new high of $120,000, but the MACD line has not risen simultaneously, which may indicate a pullback.

- Bottom Divergence:
The price has hit a new low, but the MACD line has not reached a new low (and may even be rising), with the histogram shortening (the green bars are getting shorter). This indicates that bearish momentum is weakening, and the downtrend may be nearing its bottom; attention should be paid to rebound opportunities.
For example: The price drops to a new low of $90,000, but the MACD line does not decline simultaneously, which may indicate a rebound.

4. Momentum Strength: Changes in Bar Length

- The bars gradually lengthen (red bars lengthen/green bars lengthen): indicating that the current trend (bullish/bearish) momentum is strengthening, and the probability of trend continuation is high.

- The bars are gradually shortening (red bars getting shorter/green bars getting shorter): indicating that the current trend's momentum is weakening, and caution should be taken for a potential trend reversal.

3. Precautions for Use

4. Combining Trends and Cycles: The MACD signals are more reliable in markets with clear trends (such as daily or weekly charts), while in sideways markets, false golden crosses/dead crosses may occur. It is necessary to validate with Candlestick patterns (such as support and resistance levels) or other indicators (such as RSI).

5. Avoid single reliance: MACD is an auxiliary tool and should be combined with price trends, trading volume, market news, and other comprehensive judgments to avoid trading based solely on a single indicator.

6. Flexible Adjustment of Parameters: The default parameters (12, 26, 9) are suitable for most markets. For short-term trading, you can try shortening the parameters (e.g., 6, 13, 5), while for long-term trading, you can extend the parameters, adjusting based on actual market conditions.

The core logic of MACD is to assess market sentiment through "trend direction + momentum changes + divergence warnings." In actual use, it is necessary to combine the volatility of specific varieties (such as cryptocurrencies which have high volatility, requiring more cautious signals) and one's own trading cycle, to avoid mechanically applying signals.