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Bitcoin MACD Chart

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Reading the MACD Chart

  • The MACD chart displays the momentum of an asset's price.
  • The main line (MACD line) is the difference between the 12-day and 26-day exponential moving averages (EMA).
  • The Signal line, a 9-day EMA of the MACD line, serves as a trigger for buy/sell signals.
  • When the MACD line crosses above the Signal line, it's a bullish sign, suggesting potential upward momentum.
  • A cross below indicates potential downward momentum.
  • The bars (Histogram) represent the difference between the MACD and Signal lines, visually emphasizing the strength and direction of momentum.

Purpose of MACD in Trading

  • Traders use MACD as it provides insights into the asset's momentum and potential trend reversals.
  • By observing crossovers and the Histogram, traders make informed decisions about entering or exiting positions.
  • The MACD's versatility in highlighting both trend and momentum makes it a favored tool among traders, helping to minimize risk and capitalize on potential profit opportunities.

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Article Sources

BuyBitcoinWorldWide writers are subject-matter experts and base their articles on firsthand information, like interviews with experts, white papers or original studies and experience. We also use trusted research and studies from other well-known sources. You can learn more about our editorial guidelines.

  1. Investopedia - MACD Indicator Explained, with Formula, Examples, and Limitations, https://www.investopedia.com/terms/m/macd.asp

About the Author

jordan tuwiner

Jordan Tuwiner is the founder of BuyBitcoinWorldwide.com. He studied computer science at Towson University and holds an online degree in trading & cryptocurrency. Jordan has been writing about Bitcoin since 2015. His work has been featured in The Guardian, International Business Times, Forbes, VentureBeat, CoinDesk and many other top Bitcoin media outlets.



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