MACD Technical Analysis Buy and Sell Bitcoin Trading Signals

Since the MACD cryptocurrency indicator uses 26 and 12 Exponential Moving Average to plot, we shall compare these two EMAs with the MACD indicator to determine how these buy and sell cryptocurrency signals are generated.

MACD Cryptocurrency Indicator - Example of MACD Bitcoin Indicator

The MACD btcusd technical indicator is a leading indicator meaning it generates bitcoin trading signals that are leading compared to btcusd price action as opposed to lagging indicators that lag behind the cryptocurrency price.

Buy Bitcoin Trade

A buy bitcoin trade is generated when there is a MACD fast line crosses above the signal line. However, as with any leading indicator these cryptocurrency signals are prone to whipsaws/ fake outs.

To eliminate the whipsaws it's good to wait for confirmation of the buy or sell cryptocurrency trading signals. The confirmation cryptocurrency signal is when the two lines cross above the zero mark, when this happens the buy generated is a reliable crypto signal.

In the cryptocurrency trading example illustrated below, the Moving average cryptocurrency indicator generated a buy bitcoin trading signal, before btcusd price started to move up. But it wasn't until the MACD moved above the zero line that the buy cryptocurrency signal was confirmed, and the Moving Averages also gave a crossover crypto signal. From experience it's always good to buy after both the MACD lines move above zero center line mark.

Where to Buy using MACD Cryptocurrency Indicator - Buy Bitcoin Trading Signal

Sell Bitcoin Trade

A sell cryptocurrency signal is generated when there is a MACD fast line crosses below the signal line. However, just like the buy bitcoin trading signal, these are also prone to whipsaws/ fake outs.

To eliminate the whipsaws it's good to wait for confirmation of the sell crypto signal. The confirmation is when the two lines cross below the zero mark, when this happens the sell generated is a reliable crypto signal.

In the cryptocurrency trading example illustrated below, the Moving average generated a sell confirmed after MACD moved below the zero line at the same time that the Moving Averages gave a crossover crypto signal.

Where to Sell using MACD Cryptocurrency Indicator - Sell Bitcoin Trading Signal