1.1. what is macd
1.2. macd trading
Trading on Cryptocurrency Bitcoin Etherium with MACD
Moving Average Convergence Divergence. Most do not even know what it is. But, it is quite simply a trend-following momentum indicator, or oscillator that shows the relationship between two moving averages of prices for currencies. The MACD is calculated very simply by subtracting the 26-day exponential moving average (EMA) from the 12-day EMA. A nine-day EMA of the MACD, called the signal line, is then plotted on top of the MACD, functioning as a trigger for buy or sell a given currency or asset based on its price.
Traders use MACD routinely to trade in the direction of short-term momentum, as it can be quite difficult to predict and track. However, it can be considerably more difficult when no tools are available for tracking. The popularity of the MACD is largely due to its ability to help spot increasing short-term momentum. In the cryptocurrencies world, this technology is now being actively applied for trading the juxtaposition of two lines on the graph is used to determine when a currency is trading high or low. Such tools allow traders to determine when it is a good time to sell high.
Nowadays, few traders actually sit in front of rows of screens and wait for the opportune moment. Most simply delegate this to automated trading bots. Such applications are programmed with a certain trading strategy, they then follow the MACD graph and instantly sell when they detect appropriate times to act. The entire affair may seem unfair or unethical, but the trading market is not known for its virtuous nature.
Though the crypto market is still relatively new and lacks many of the traditional institutions of a civilized market, there are projects on the market that seek to indemnify or mitigate the associated risks that investors take when deciding to invest in projects. Cryptics is one such project that seeks to offer the necessary instruments for alleviating the situation with uncertainty. The concept behind it is to support market participants by providing liquidity on exchanges and a safety cushion for retail investors by creating a platform that connects market players and develops algorithms to predict changes in the value of cryptocurrencies. Such instruments based on highly advanced scoring models involving machine learning and AI are incomparable with human intuition that even the luckiest and most prudent investors could ever be endowed with. The multitude of factors involved in predicting a cryptocurrency’s rise or fall are all taken into account by the algorithms that Cryptics employs. Investors should consult such projects as the expense is well worth the ensured profit and peace of mind.