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If an MCAD shows a dead cross in a 1-hour time frame and a golden cross in a 15-minute time frame, what to do? Is it safe to open the long position or the short position?
First, you should remember that in crypto trading, any indicator is an auxiliary tool and only advantageous when used in accordance with the overall market conditions.
If you look at the above two charts, the 1-hour chart indicatess a dead cross; it means the prices will fall for a certainin period of time and pull back. From the 15-minute time frame, we can learn that the price will start rising again. If we combine both scenarios, we can understand that the price will rise again in 1-hour time frame.
The real problem occurred when the 15-minute time frame will suppressed by the 1-hour pullback. Moreover, if you open a 15 minute short position, the appreciation of the prices will not be large.
It is also simple to understand that the downward direction has maximum potential to move forward. So you should avoid opening the short position in the 15-minute time frame. Obviously, you never reject this idea that golden crosses have the chance to go for long, but in our example, the overall market momentum is small, and traders rhythm is quite slow.
In summary, MCAD could be used in multiple time frames, but you should learn about the overall market conditions. If market momentum is high, you have more chances to make money.
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