"golden cross"
In the rising market of the stock market, short-term moving averages such as 5-day line and 10-day line break through from below and cross with long-term moving averages such as 30-day line and 60-day line, which is called golden cross. For example, the 10 moving average crosses the 30-day moving average from bottom to top, forming an upper 10 moving average and a lower 30-day moving average, and the intersection point is a golden cross. The golden cross is the performance of the bull. After the emergence of the golden cross, there will be some room for growth in the market outlook, which is the best time to enter the market.
Cross of death
In the decline of the stock market, the phenomenon that the short-term moving average breaks through the long-term moving average from above is called death crossing. For example, when the 30-day moving average crosses the 10 moving average, the 30-day moving average crosses the 10 moving average from bottom to top, forming a "death crossing" with the 30-day moving average above and the 10 moving average below. The "death cross" indicates that the short market is coming and the stock market will fall. This is the best time to play.
Whether it is a golden cross or a death cross, it is a signal of buying and selling. In the trend analysis of individual stocks, we can grasp the timing of entry and exit, and in the trend analysis of indexes, we can also judge the situation of bulls and bears. These two kinds of intersection have high accuracy in long-term application.
The cross of death and the cross of gold
In the moving average chart where the daily line and the short, medium and long lines are arranged at the same time, in addition to the bulls (bull market) and bears (bear market) with clear situation, there are more tangled lines. Here, we should pay special attention to the inversion signal displayed by the moving average, the most famous of which are the golden cross and the death cross.
Whether it is a golden cross or a death cross, it is a signal of buying and selling. In the trend analysis of individual stocks, we can grasp the timing of entry and exit, and in the trend analysis of indexes, we can also judge the situation of bulls and bears. In the long-term application, it seems that the accuracy of these two intersections is higher than glanville's Eight Laws.
References:
Death Cross-Baidu Encyclopedia