Field Notes
False breaks around the zero line
MACD’s zero line attracts attention because textbooks treat a cross through zero as a regime shift. In practice, price and MACD can hover around that line while signal-line crosses fire in both directions.
What we observe
On several KOSPI names in mild trends, MACD pierces zero, retreats, and pierces again within a few sessions. Traders who treat the first pierce as a regime change often reverse themselves within days.
A practical filter
Require the MACD line to close beyond zero by a minimum distance you define in advance—or require a confirming swing break in price—before a zero-line story can upgrade a signal-line cross. The exact distance is personal; the requirement to write it down is not.
Classroom caution
We do not claim zero-line filters remove uncertainty. They remove unexamined enthusiasm. Bring your own borderline examples to an evening clinic if you want them debated live.