Assets, Bitcoin

How Do I Use MACD for Bitcoin?

Bitcoin is a decentralized digital currency, without a central bank or single administrator, that can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.

Bitcoin is unique in that there are a finite number of them: 21 million.

Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services.

NOTE: WARNING: Using MACD for Bitcoin trading carries with it the potential to incur significant losses. The MACD indicator is a lagging indicator and is unable to anticipate future price movements. As such, traders must be aware of the risks inherent in using this system and take appropriate steps to manage them. Furthermore, it is important to use risk management tools such as stop-loss orders and position size calculators to minimize potential losses. Finally, traders should always practice sound money management and never risk more than they can afford to lose.

[17] As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.[18].

The European Banking Authority and other sources have warned that bitcoin users are not protected by refund rights or chargebacks because bitcoins are not regulated as financial instruments.[19]

MACD is an indicator that shows the relationship between two moving averages of prices. The MACD is calculated 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 line, which can function as a trigger for buy and sell signals. Traders may buy the currency when it crosses above the signal line and sell – or short – the currency when it crosses below the signal line.

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