2026-01-08 16:25:16

To avoid detours in crypto trading, the choice of technical indicators is crucial. MACD may seem simple, but if understood thoroughly, it can be useful for both futures and spot trading.

**The Three Components of MACD**

Many people treat MACD as a regular indicator, but it is actually a complete momentum recognition system. The DIF line reflects short-term price momentum (measured by the difference between the 12-day and 26-day EMAs), the DEA line is the smoothed version of this momentum, and the histogram visually shows the current strength comparison between bulls and bears.

In 2019, during Bitcoin's correction, the clear-out was completed by observing the moment when the DIF line broke through the zero axis, after which the market dropped nearly half. What does this example tell us? MACD is not for frequent trading but for capturing key moments of trend reversals.

**Significance of the Zero Axis**

The zero axis divides the market into two worlds. Above the zero axis, bulls are in control; any golden cross should be taken seriously. Below the zero axis, bears dominate, and death cross signals are most powerful. Crossing the zero axis itself often indicates a deeper trend shift than just a regular golden or death cross.

**Practical Application of Golden Cross Signals**

The nearly 80% rally of Bitcoin in January 2023 was initiated after a golden cross appeared above the zero axis. Such a golden cross usually signals the start of a major upward wave, but only if you confirm it occurs in the bullish territory above the zero axis.

BTC0,35%

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AirdropAutomaton

· 14h ago

The golden cross above the zero axis is indeed fierce. In 2023, I was stuck in a dead cross below during that wave.

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GasFeeBeggar

· 18h ago

Is the golden cross above the zero axis really that reliable? Why am I still losing so much that I don't even have my underwear left?

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ZenMiner

· 01-08 16:54

Golden cross above the zero axis, I really haven't missed many bottoms, but to be honest, most of the time I still get caught in the trap. Wait a minute, why are all your examples like armchair strategists after the fact? Who can accurately catch that moment now? MACD looks simple, but it's extremely difficult to use effectively. The key is to maintain the right mindset. Last year, I lost a lot because I kept looking at indicator results and getting frustrated. Now I've learned to be smarter. The zero axis is truly a watershed; that's correct. But the dead cross signals below can sometimes be extremely deceptive.

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MEVHunter

· 01-08 16:49

The moment the DIF line crosses the zero axis is the real hunting time; most people are chasing garbage signals.

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FlashLoanLarry

· 01-08 16:47

lmao zero-axis crossovers don't print money, they just print opportunity costs... seen too many retail traders miss the actual liquidity depth on those "key moments"

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CodeAuditQueen

· 01-08 16:35

Zero-axis crossing is indeed a key signal, but to be honest, most people simply can't catch it. Just like reentrancy vulnerabilities in smart contracts, which appear to be simple logical flaws on the surface, truly understanding their power requires a deep understanding of the entire execution process.

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DataOnlooker

· 01-08 16:31

Honestly, it took me so long to realize that the zero line is the key with MACD. --- Another golden cross at the zero line, another trend reversal. It sounds right, but how many can really follow through? --- I missed the 2019 liquidation, and I regret it so much now. If I had known earlier, I would have studied this indicator more. --- The area above and below the zero line are two different worlds. It sounds like Zen philosophy haha, but I just don't know if I can catch the right moves next time. --- MACD looks simple, but in practice, it's too difficult to operate. It's still easy to get caught. --- It's mainly a matter of execution. Many people understand it, but only a few really make money. --- Golden crosses and death crosses happen every day. The key is not to play with fire near the zero line; losing money will come quickly.

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Web3Educator

· 01-08 16:29

ngl the zero-axis thing actually changed my whole trading game, not gonna lie... caught that btc dip in '19 too and my students were shocked lol

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