Golden Cross is a commonly used technical term in the stock market. It means that a short moving average crosses a longer moving average in the downward direction, and then the two moving averages point upward, then this moving average combination is a "moving average golden cross", otherwise it is a "moving average dead cross". Generally, a golden cross is a buy signal, and a dead cross is a sell signal. At the same time, it is necessary to combine the combined time period of the moving average system to determine whether it is a short-term transaction or a mid-line swing transaction. What needs special attention is the direction of the two moving averages after the moving average crosses. If it is not unanimously upward or downward, it is an ordinary moving average crossover, not a "golden cross" or a "dead cross".
1.KDJ’s full name is Stochastics, created by George Lane. It combines the concept of momentum, the advantages of strength indicators and moving averages. It was used in futures investment in the early years and its functions are quite significant. , one of the most commonly used indicators in the stock market.
2. Technical indicators are easy to use and intuitive to judge, and are deeply loved by the market. In fact, although indicators can play a useful reference role, they are obviously over-exaggerated, and even make people fall into the indicator trap. This is because the indicators are calculated based on volume, price, and space-time data, and the calculation process is often slower than the actual stock price changes. The price and volume of transactions come first, and the changes in indicators come later. The indicators often lag behind. The stock price and indicators are in a causal relationship. The "effect" can be derived from the "cause", but it is not necessarily possible to trace the "cause" from the "effect". Therefore it cannot be considered a panacea.
3. Therefore, do not rely too much on and be superstitious about indicators in actual combat. Of course, classic indicators such as KDJ, RSI, MACD, and SAR still play a certain role as auxiliary tools in actual combat. Illustration of Golden Cross and Dead Cross Golden Cross: When the shorter-period moving average crosses the longer-period moving average upward from below the long-term moving average, the intersection formed is what is often called the Golden Cross. Many technical indicators also use this term to indicate a benign crossover.
4. Since the Golden Cross is the intersection point where the short position is transformed into the long position, many people will pay attention to it, and it has certain practical value. The different golden cross points of the moving averages at different cycle parameter levels used will have a certain supporting effect on the future trend of the stock. We call it support radiation.
The 5.5-day moving average crosses the 10-day moving average, which is a good sign; the 10-day moving average crosses the 30-day moving average, which is also a good sign. In short, the short-term moving average has to cross a longer moving average before it can look higher.