What Role Does the MACD Indicator Play in Confirming a Continuation of a Downtrend?

The MACD (Moving Average Convergence Divergence) shows the relationship between two moving averages. In a dead cat bounce, the MACD line may briefly cross above the signal line (a bullish signal), but it quickly crosses back down (a bearish signal), or it fails to cross the zero line.

This failure confirms that the short-term momentum shift was not strong enough to reverse the long-term bearish trend.