This article has been translated from English to Gen Z Slang.
So, how do we peep a trend?
The indicators that can work their magic have already been spotted as MACD and moving averages.
These indicators will catch trends once they’re vibing, but you'll get that delayed FOMO entry.
The upside is, you’re less likely to get it twisted.
On GBP/USD’s daily chart above, we got the 10 EMA (blue), 20 EMA (red), and the MACD up in here.
Around October 15, the 10 EMA said, "Later, bro!" and bounced above the 20 EMA, which is a bullish crossover.In the same vibe, MACD did its thang with an upward crossover and threw a buy signal your way.
If you were quick to hop on that long trade back then, you’d be riding that sweet uptrend wave.
Later on, both the moving averages and MACD threw a couple of sell signals.
By the looks of those heavy downtrends, jumping on those short trades would’ve gotten you some serious coin.
We see those dollar signs in your eyes, fam!
Now let’s peep another chart so you can see how these crossover signals can sometimes play tricks and give you false signals.
We like to call them “fakeouts.”
On March 15, the MACD pulled a bullish crossover while the moving averages stayed chill, saying nothing.
If you went with that MACD buy signal, you just got hit with a fakeout, my dude.Similarly, the MACD’s buy signal by the end of May wasn’t backed by any moving average crossover.
If you jumped into a long trade right then, you might’ve been setting yourself up for a flop since the price took a lil’ dip after that.
Big oof!