The Ultimate Guide to MACD, the 'King of Indicators' in the Cryptocurrency World: Understand the Three Lines and One Axis, Grasp Key Buy and Sell Points
Many people feel that technical indicators are useless, but MACD can become the 'king of indicators' because it can translate complex price fluctuations into clear 'buy/sell/wait' signals. It can help you:
Identifying Trends: Capturing major upward or downward waves.
Judging Reversals: Early warning for tops and bottoms.
Filtering Noise: Reducing interference from short-term price fluctuations.
Widely Applicable: Effective for both mainstream coins and altcoins.
Core Structure: Three Lines and One Axis
The MACD chart mainly consists of four parts; understanding them is like deciphering a codebook:
1. DIFF line (fast line): The 'vanguard' of the market.