In #DeFi , MACD (Moving Average Convergence Divergence) is a popular technical indicator used for analyzing price trends and momentum in trading. It helps traders identify potential buy and sell signals based on the relationship between two moving averages of an asset’s price.

How MACD Works in DeFi Trading

1. MACD Line: The difference between the 12-day EMA (Exponential Moving Average) and the 26-day EMA.

2. Signal Line: A 9-day EMA of the MACD line, which acts as a trigger for buy and sell signals.

3. Histogram: The difference between the MACD line and the signal line, visually representing momentum strength.

How DeFi Traders Use MACD

• Bullish Signal: When the MACD line crosses above the signal line, indicating a potential buy opportunity.

• Bearish Signal: When the MACD line crosses below the signal line, suggesting a possible sell opportunity.

• Divergence: If the MACD indicator moves in the opposite direction of price action, it may signal a trend reversal.

In DeFi, MACD is used for trading cryptocurrencies, liquidity pool assets, and even yield farming strategies to optimize entry and exit points. Since DeFi markets operate 24/7 with high volatility, traders often combine MACD with other indicators like RSI (Relative Strength Index) for more accurate predictions.

So. Depends on MACD. What should I do now? $CETUS