They buy as soon as they see a golden cross, and think a reversal is coming when the red histogram shortens. What’s the result?
They miss the rebound and lose the entire trend.
👇 This chart directly reveals the truth about MACD.
① Remember one thing first
The zero line determines whether you follow the trend or bet on a rebound.
DIF, DEA below the zero line + heading down 👉 This is a standard bear market
At this time:
Red histogram shortens ❌ is not a buy signal It just indicates weakening downward momentum
The essence still favors the bears
📌 The “improvement” within the bears should be viewed as a rebound.
② Golden cross ≠ guaranteed rise
The key is to look at one thing: where it occurs
🔥 Golden cross above the water (strong)
Golden cross occurs above the zero line
Red histogram begins to lengthen
👉 This is not a rebound, 👉 but an acceleration within the trend
📈 This is the most favored signal for trend traders.
⚠️ Golden cross below the water (weak)
Golden cross below the zero line Green histogram shortens
👉 Essentially:
Short covering
Short-term rebound
📉 Low stability, weak momentum, most of the time just giving you an opportunity to exit.
③ How should MACD be truly interpreted?
✅ Zero line → determines trend direction ✅ Histogram → judge the strength of momentum ✅ Position of the golden cross → decide the signal level
💡 To sum up in one sentence
MACD never tells you “whether to buy” or not, it only tells you: whether you are following the trend, or betting on a rebound. If you don’t understand the zero line, learning more MACD won’t help. $BTC $ETH
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📉 90% of people are wrong using MACD
They buy as soon as they see a golden cross,
and think a reversal is coming when the red histogram shortens.
What’s the result?
They miss the rebound and lose the entire trend.
👇 This chart directly reveals the truth about MACD.
① Remember one thing first
The zero line determines whether you follow the trend or bet on a rebound.
DIF, DEA below the zero line + heading down
👉 This is a standard bear market
At this time:
Red histogram shortens ❌ is not a buy signal
It just indicates weakening downward momentum
The essence still favors the bears
📌 The “improvement” within the bears should be viewed as a rebound.
② Golden cross ≠ guaranteed rise
The key is to look at one thing: where it occurs
🔥 Golden cross above the water (strong)
Golden cross occurs above the zero line
Red histogram begins to lengthen
👉 This is not a rebound,
👉 but an acceleration within the trend
📈 This is the most favored signal for trend traders.
⚠️ Golden cross below the water (weak)
Golden cross below the zero line
Green histogram shortens
👉 Essentially:
Short covering
Short-term rebound
📉 Low stability, weak momentum,
most of the time just giving you an opportunity to exit.
③ How should MACD be truly interpreted?
✅ Zero line → determines trend direction
✅ Histogram → judge the strength of momentum
✅ Position of the golden cross → decide the signal level
💡 To sum up in one sentence
MACD never tells you “whether to buy” or not,
it only tells you:
whether you are following the trend,
or betting on a rebound.
If you don’t understand the zero line,
learning more MACD won’t help.
$BTC $ETH