MACD’s final guide in the cryptocurrency trade
Cryptocurrencies have been a burning subject in the shop for many years. Cryptocurrencies, such as Bitcoin, Ethereum and others, are looking for new ways to analyze and make profitable businesses. One of the most popular technical analysis tools used in the cryptocurrency trading is the differences in the average convergence of mobile devices (MACD), which have largely accepted all level merchants. In this article, we provide the perfect guide for MacD, including its components, parameters and how it is used for the cryptocurrency trade.
What is MacD?
MACD refers to the difference between average mobile devices, which is a technical analysis tool that helps merchants identify financial market trends. MacD is a line graphics that traces two mobile phone average over different periods of time. One line is exponential mobile message average in 12 periods (EMA) and the other is the 26 episode EMA. When these two lines are converging or different, this may indicate the trend resistance and direction.
MacD components
MacD components are:
- Signal Line : This line traces EMA to indicate possible purchasing signals.
- Line dedicated : This line traces EMA to show potential sales signals.
- Intersection Water : When the signal line exceeds maintenance, it indicates a change in the trend.
Settings
Definition MacD:
- EMA periods
: Select 12, 26 or any other amount of time periods. The longer the EMA period, the more stable it is.
- Signal line period : This determines the frequency by which the signal line exceeds or below it is maintained to indicate a change in the trend.
Using MacD for Cryptocurrency Trade
MACD use in cryptocurrency shop:
- Short -term commerce : Use at shorter deadlines such as 1 hour, 4 hours and 8 hours of graphics.
- Long -term shop : Use longer than your MACDs, such as daily, weekly or monthly graphics.
- Identify Trends : Find the crossing between the signal line and the line held to identify possible trend changes.
- Confirm Signals : Use other indicators such as RSI, Bollinger lanes or stochable oscillator on MacD to confirm your purchase or sales signals.
tips and tips
- Start on a fixed background : Before using MacD in cryptocurrency trade, make sure you have a solid understanding of the concepts of technical analysis.
- Use multiple deadlines
: Try different MacD settings at different deadlines to see what works best for your trading style.
- Be patient : MacD is not a magic fueled tool that guarantees profits; It is necessary to be patient and consistent with your trading strategy.
- Don’t exceed : Avoid winning using MacD only when you have a strong conviction for the trend.
conclusion
MacD is an advanced technical analysis tool that can help merchants identify trends and perform profitable transactions in the cryptocurrency market. By following this perfect guide, you are going to manage your MacD technology and become a successful cryptocurrency merchant. Don’t forget to stay patient, disciplined and conscious, as the world of cryptocurrency trade is constantly evolving.
Other resources
For more information on MacD and technical analysis, visit the following resources:
* Investopedia : A complete resource for learning financial markets and technical analysis.
* TradingView : Beginning with cartography and financial market analysis, and the community of large merchants and analysts share information and ideas.
* CRYPTOCOMPAGE : A website that offers cryptocurrency prices, graphics and news in real time.
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