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Author Topic: MACD - How to know it's a 'confirmed cross'?  (Read 120 times)
thegoatiest (OP)
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October 11, 2018, 12:03:06 PM
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Hey,
Busy learning here, could you help clear something up for me?

I've been reading up on the MACD indicator on Investopedia.
Theres one segment which has got me a bit confused:

"When the MACD rises above the signal line, the indicator gives a bullish signal, which suggests that the price of the asset is likely to experience upward momentum. Many traders wait for a confirmed cross above the signal line before entering into a position to avoid getting "faked out" or entering into a position too early"

So, how does one ascertain that a cross-over is confirmed? In order to avoid getting 'faked out' (I assume getting faked out is reading a false signal and making a trade based on it)
Thanks,
G
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