[Quick Understanding of MACD] Most classic indicators of Technical Analysis originated around 1978-79. Technical Analysis mainly provides quantitative auxiliary support. As a predictive tool, it has a certain latency: the image is a note from 7 years ago, and basic financial knowledge is typically where learning begins, gradually sharing some insights with passersby if they are interested. 🍻
MACD=2x(DIF-DEA) Moving Average Convergence Divergence and the last word here is actually most related to psychological trading. Divergence types are like the changes in your meals, which are easy to notice, while changes in your diet over a week might be more regular, and a month might show even more patterns. Therefore, the longer the cycle, the more accurately this indicator reflects the quantified patterns within that cycle. The drawback of MACD is that it has a certain degree of latency, so it often fails in short-term during volatile markets. The crossover of long-term indicators (golden and dead) may provide a certain level of signaling. PS.【Key Reminder: ⭐️ All Technical Analysis indicators should only be used as a reference. The root cause of many institutions going bankrupt in quantitative trading is also due to an excessive obsession with mathematics 🧮. However, investment actually has a very decisive 5% human factor, such as Trump's emotions, which is difficult to assess mathematically for prediction.】 #BTC
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[Quick Understanding of MACD] Most classic indicators of Technical Analysis originated around 1978-79. Technical Analysis mainly provides quantitative auxiliary support. As a predictive tool, it has a certain latency: the image is a note from 7 years ago, and basic financial knowledge is typically where learning begins, gradually sharing some insights with passersby if they are interested. 🍻
MACD=2x(DIF-DEA)
Moving Average Convergence Divergence and the last word here is actually most related to psychological trading. Divergence types are like the changes in your meals, which are easy to notice, while changes in your diet over a week might be more regular, and a month might show even more patterns. Therefore, the longer the cycle, the more accurately this indicator reflects the quantified patterns within that cycle.
The drawback of MACD is that it has a certain degree of latency, so it often fails in short-term during volatile markets. The crossover of long-term indicators (golden and dead) may provide a certain level of signaling.
PS.【Key Reminder: ⭐️ All Technical Analysis indicators should only be used as a reference. The root cause of many institutions going bankrupt in quantitative trading is also due to an excessive obsession with mathematics 🧮. However, investment actually has a very decisive 5% human factor, such as Trump's emotions, which is difficult to assess mathematically for prediction.】
#BTC