In the unpredictable cryptocurrency world, the MACD indicator is like a sword that cuts through iron, helping you clear the fog and see the essence of the market. Today, we will deeply decode the practical skills of MACD, enabling you to easily navigate the market and embark on a journey of wealth growth!
1. Zero line: An accurate compass for market direction
1. Golden cross above the zero line, like stepping onto the expressway to wealth: When the DIFF line forms a golden cross with the DEA line above the zero line, it is not a coincidence; it is a signal of strong bullish momentum in the market! At this point, the trend rushes up like a wild horse, and you just need to follow the trend, firmly hold onto long positions, and wait for profits to snowball, enjoying the exhilarating meat market.
2. Death cross below the zero line flashes, like falling into a downturn vortex: Once the DIFF line forms a death cross with the DEA line below the zero line, it is like the market sounding the retreat trumpet. The bearish strength is instantly ignited, and the market will accelerate downwards like a kite with a broken string. At this point, decisively cutting losses is the best strategy; do not let the principal sink deeper into this endless downward abyss.
2. Divergence: The whistleblower of trend reversals
1. Top divergence forms, hurry and escape: When the cryptocurrency price hits new highs wave after wave, but the MACD bars are unable to create new highs and even begin to shrink, top divergence is generated. This indicates that the upward momentum in the market has been exhausted, and the market could turn down at any moment. If you do not evacuate quickly, you may only become a bag holder, watching profits vanish.
2. Bottom divergence appears, boldly layout for bottom-fishing: As the cryptocurrency price continues to test the bottom, the MACD line quietly rises, signaling the arrival of bottom divergence. This indicates that the downward momentum in the market is weakening and that the bears are about to retreat. The brave can enter in batches to layout, perhaps picking up an undervalued gem and making a significant profit during the subsequent rebound.
3. Volume and price: The mirror of true and false signals
1. Golden cross with increasing volume, the main uptrend surges: A golden cross is originally a bullish signal, and if the trading volume continues to increase and exceeds 1.5 times the 20-day average volume, it is like injecting a strong dose of adrenaline into the bullish market. Market funds will flood in, and the main uptrend will inevitably come like a tidal wave. What you need to do is follow this wave with heavy positions and enjoy the thrill of profit.
2. Death cross with shrinking volume is just a washout scam: If a death cross appears while the trading volume is weak, it is likely just a trap set by the market makers. The market seems to be brewing a storm, but in reality, it is just a display of false bravado. At this time, cutting losses is akin to cutting off your financial lifeline; firmly holding onto your chips and waiting for the bulls to return is the best strategy.
4. Practical mantra: A refined summary of wealth codes
1. Second golden cross above the zero line, weekly resonance, an excellent opportunity for heavy positions: When the DIFF line completes a second golden cross above the zero line and the weekly trend also golden crosses upwards in resonance, it is like having the right timing and conditions. At this time, making a heavy investment will significantly increase the probability of success, with the potential for rapid wealth accumulation in a short time.
2. Golden cross below the zero line, don't blindly follow the trend to buy: A golden cross below the zero line often hides risks and uncertainties. Entering rashly may lead you into a trap set by market makers. First, calmly observe the trend direction of the weekly chart, judge whether the broader environment supports bullish development, and then decide whether to take action, so you can navigate steadily and long-term in this unpredictable cryptocurrency world.
Mastering this MACD practical guide is like having the key to unlock the treasure of wealth. In the turbulent cryptocurrency world, skillfully using the zero line, divergences, and the intricate interplay of volume and price allows you to accurately seize buying and selling opportunities, enabling you to stand out in this market full of opportunities and challenges, achieving stable wealth growth. Hurry up to collect and study, and advance towards the goal of financial freedom at full speed!
