Losing money and feeling lost? Understand MACD and avoid ten years of detours!
To be honest, once you step into the crypto world, it's hard to turn back!
If you are still losing money now, and if you want to treat trading cryptocurrencies as a second profession, I advise you to seriously learn the simplest and most profitable tool: the MACD strategy.
Today, let's thoroughly explain the MACD, which can help you turn your fortunes overnight!
What exactly is MACD?
Its essence is the "convergence and divergence" between the short-term and long-term moving averages. Simply put, it's about the tug-of-war between bullish and bearish forces.
MACD is mainly composed of three parts:
Blue line DIF (short-term strength)
Yellow line DEA (long-term strength)
Red and green bars (energy strength)
The mnemonic is super simple:
Blue line crosses above yellow line (golden cross) = Buy signal
Blue line crosses below yellow line (death cross) = Sell signal
MACD turns from negative to positive = A new wave of major trends is about to take off
MACD turns from positive to negative = Risk is coming, better run
This is the most intuitive "wealth code" in the crypto world!
Two major highly profitable MACD strategies
1. Go with the trend: Buy on golden cross, sell on death cross
It sounds like chasing high and selling low, but the core is to capture the main trend. The big players won't let you easily see through, so you need to combine candlestick patterns and volume to make predictions in advance.
In a bull market, buying on a golden cross is the starting point for becoming incredibly wealthy.
In a bear market, selling on a death cross is the only way to escape the peak.
2. Divergence rule: The ultimate tool for escaping peaks and buying bottoms
Top divergence: The price hits a new high, but MACD goes down → A major peak has formed, time to run!
Bottom divergence: The price hits a new low, but MACD goes up → A buy signal, often the starting point for the next big surge!
In summary: Sell on top divergence, buy on bottom divergence, accurately escape peaks and buy bottoms!
Final reminder:
MACD is not a universal key, but it's the easiest core indicator for beginners to grasp major trends.
The market is ruthless, and novices are often manipulated by the big players with "false golden crosses" and "false divergences." If you focus solely on one indicator, it's easy to fall into traps.
So remember: MACD is the foundation, but true wealth comes from the combination of trend + position + discipline.
Save this article, and when the market arrives, you will thank your present self!
By understanding MACD, you are not a victim; you are among those who harvest the emotions of others!
