How to Know When to Buy or Sell a Cryptocurrency using MACD Indicator.

How to Know When to Buy or Sell a Cryptocurrency using MACD Indicator.

Knowing the right time to buy or sell a particular cryptocurrency is cogent in becoming a successful crypto trader.  Fundamental Analysis (FA) coupled with the right Technical Analysis(TA) tool will help you determine the best time/price to enter and exit a trade.

Out of all the TA tools available, the Moving Averages Convergence and Divergence(MACD) Indicator stands out because it’s easy to use and interpret.

Constructing the MACD

There are three main components to the MACD indicator: the MACD line (blue oscillator), the signal line (orange oscillator) and the histogram.

Source: Coindesk.com

Two Method to Interpret the MACD

The Cross

When the MACD crosses above the signal line, it is known as a bullish cross and when it crosses below, its known as a bearish cross. The crosses indicate a shift in trend momentum and represent buy or sell signals depending on the type of cross.

Overbought and Oversold

The MACD can also identify overbought or oversold market conditions. This conditions are presented when the MACD and signal line separate too far away from both one another as well as the zero line.

Watch the video above for more detailed explanation and drop your suggestions in the comment box below.

Source: Coindesk

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Comments (4)

  • Obanla Amos Reply

    Your training is very good and fantastic tanks

    October 18, 2018 at 9:16 pm
    • Kehinde LAWAL Reply

      You’re welcome, I’m happy you found it helpful.

      October 28, 2018 at 12:06 pm
  • Bamidele Reply

    I love this ur training, very easy to understand thanks

    September 15, 2019 at 7:34 pm
    • Kehinde LAWAL Reply

      Thanks my good friend. I’m happy you found it easy to understand.

      September 15, 2019 at 8:06 pm

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