Hello Apes and hedgies, this is my first attempt at a TA and i will be utilizing technical indicators.
So for those of you who do not know what the MACD or RSI are, strap the fuck up, put on your got damn helmet, tell your wife’s boyfriend to bring a banana smoothie and lets see if we can put a few wrinkles in your brain.
THE MACD
So the MACD stands for Moving Average Convergence Divergence. It is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. The MACD is calculated by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA. I’ll explain this in a much more simpler way later on in this post with nice lines.
THE RSI
The RSI or Relative Strength Index is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. This is generally measured between the numbers 70 and 30. The higher the RSI gets to 70, the more overbought the security is considered. The lower to 30 it is, the closer it gets to being in what is called oversold territory.
Now i know some of you might have some crayons in your nose rn preventing some wrinkles from forming so this is where you are going to want to pay attention.
So in this pic above, is the current MACD and RSI on the 1 day time frame. The RSI shows it is about 50, which is neutral. meaning it is not overbought or oversold. The MACD on the bottom is the real important kicker. You see how close those lines are together right now? Got damn that is what makes an Ape cry. This is indicative of a breakout. It has been consolidating around the same price, which deflates the RSI from overbought to neutral. In the bottom the bars going up and down below the midpoint shows the momentum of the security. Obviously red downward means downward trend, and green is vice versa. What is important is the far right how close the lines are.
This image shows you the MACD and RSI on the *last* breakout that we had. Back in earlier March it broke up to 348 before being absolutely fucking dumpstered harder than Lebron when he yammed on that one white guy. As you can see, the lines again right before breakout are practically touching. When the volume is almost not even visible above the neutral line, and it’s alternating back and forth, the stock is getting ready to either fucking rocket to got damn mars, or tell you what the earth’s core is actually made of.
This is yet again another example of the MACD showing great consolidation, and little to no major movement, and then fucking *BAM* that shit shoots up faster than a smack addict getting a free score. The close lines and minimal volume is *KEY*.
This is when it broke out at the end of January. LOOK AT THIS GOT DAMN MACD AT THE BOTTOM. Do you see how fucking close the lines are? Can you tell what happens next? Of course you know what the fuck happened or you wouldnt even be here reading this trash ass post right now.
This is not financial advice and i’m just a crayon eating ape trying move up to fucking markers.
TLDR: MACD and RSI says moon soon
Edit: The yellow line is the MACD line and the red line is the signal line. When the MACD line crosses it upwards the momentum is up meaning price increase. Obviously vice versa on a downward cross.