Did you know the real magic of MCAD is not the Golden Cross and Death Cross? Maybe you ask me why you say that when many people make money from MCAD Golden Cross. Yes, it is true, but the real advantage of MCAD lies in its divergence. Initially, it looks difficult for you, but after some practice, you will master the MCAD divergence.
MACD dilemma
- Many times, if you chase high, you will be shocked and exit the markets because you are unable to achieve the result.
- Many times traders perform bottom-fishing but never achieve the best result.
The above two problems can be solved by learning the top and bottom divergence.
Bottom divergence
You can enter the marker when the coin price continues to bottom out, and suddenly a MACD green column appears. If the MCAD golden cross also appears, it is the main entry point. It is technically known as a bottom divergence signal.
Top divergence
You should prepare yourself to exit the market when the price continues to hit new highs and if the MACD green columns are shrinking. Once the volume is reduced, the red bar appears. In addition, the death cross also appears. It is the indication that the main force starts selling out; it is time to exit the market. This signal is known as top divergence.
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