The golden fork of the moving average, when the moving average with a shorter period passes through the moving average with a longer period from the lower part of the long-term moving average, the intersection point formed is what we often call the golden fork. (Many technical indicators also use this word to indicate a benign crossover. Such as KDJ)
The meaning of golden fork, because golden fork is the intersection of short arrangement and long arrangement, so many people will pay attention to it, and it has certain practical value. Moreover, the different golden intersections of the moving averages with different cycle parameter levels used have a certain supporting effect on the future trend of the stock. We call it supporting radiation.
The dead fork of the moving average, when the moving average with a shorter period passes through the moving average with a longer period from the upper side of the long-term moving average, the intersection formed is the dead fork that everyone often says. (Many technical indicators also use this word to indicate the intersection of risks. Such as KDJ)
The "dead fork" means the intersection where bulls turn into bears, which naturally causes the market to be cautious. The tip of the damn fork has some resistance, so we call it pressure radiation. Remember, don't tamper with the settings of the dead fork position and period. )
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Golden fork usage
Generally, the golden fork is a buying signal, and the dead fork is a selling signal. At the same time, it is necessary to judge whether it is short-term trading or mid-line band trading according to the combined time period of this moving average system. Pay special attention to the direction of the two moving averages after the crossing of the moving averages. If it is not evenly up or down, it is an ordinary average crossing, not a "golden fork" or a "dead fork".
The full name of KDJ is random index, which was created by George Ryan. Its comprehensive momentum concept, strength index and the advantages of moving average have been applied to futures investment for several years, and the effect is quite remarkable. At present, it is one of the most commonly used technical analysis indicators in the stock market.
References:
Baidu encyclopedia-golden fork