The Hull MACD and keeping a wide view

BITMEX:XBT   Bitcoin / US Dollar Index
The Hull MACD is simply a MACD made out of Hull moving averages. As such it is low lag indicator and generally is more useful in telling you went to exit a long position than it is in telling you when to get back in (I like to use the normal MACD for that). When you combine the two together you can intuit quite a bit of information. In general, the normal MACD will help you understand where is the general momentum. If it is above zero then prices are relatively increasing, if it is below zero, prices are declining.

Using the Hull MACD and the normal MACD in tandem takes some getting use to. For example, if the normal MACD is above Zero once the Hull Histogram peaks and then goes down it predicts a relative high in an assets price. If the normal MACD is below zero and the Hull Histogram valleys out and then starts to increase you will see a relative low. Like much of TA it is as much art as it is science and even throwing bones.

In this Idea we can clearly see the Hull histogram has valley'ed out and is on its way back up. The Hull MACD is just above the signal line and surging towards zero. This is a bullish signal by itself. We also see that the normal MACD is below the signal line but above zero. My belief (hope?) is the improvement in the Hull MACD is strong enough that we will see the normal MACD cross above the normal signal line and we will see all kinds of gains for a few months. Even if we just see a slowing in decent of the normal MACD I think there are lots of gains to be had in the next few weeks.

This is a solid signal that XBT is bullish for the next few weeks to months. There are going to be bear days and savage dips along the way, that is standard. If you day trade, day trade, if you swing trade (like I prefer to do), then do that. If you are long, then this should be quite comforting to you. Hope this gives some perspective.

And of course, if you see both the Hull MACD and the Normal MACD below zero you should abandon all hope if you want to go long.
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