Because the golden fork and the dead fork of the moving average system are easier to understand and master, many successful investors have mastered the important technology of trading points. However, how to make good use of the golden fork and the dead fork needs careful study. Only by mastering the meaning and form of reliable golden fork and dead fork, and judging their effectiveness with "inflection point of moving average", can we accurately grasp the opportunity to enter and exit and improve the winning rate of entry and exit.
Below, the author takes you to learn more about the use of the golden cross and the death cross.
Gold cross medal
Golden cross, which often appears in the rising area of individual stocks, is characterized by short-term moving averages such as MA5, MA 10 breaking through long-term moving averages such as MA30 and MA60 from bottom to top, and the resulting crossover phenomenon is called golden cross. For example, the upper line of MA 10 crosses with MA30, forming the shape that MA 10 is above and MA30 is below, and the intersection point is the golden cross.
Meaning: the golden fork is the performance of many parties occupying a favorable low position. Once there is a golden fork in individual stocks, there is considerable room for the market to rise, and the golden fork is the best time to enter the market.
Cross of death
Death crossover often appears in the falling area of individual stocks, which is characterized by short-term moving averages breaking through long-term moving averages from top to bottom, and the resulting crossover phenomenon is called death crossover. For example, MA 10 descends through MA30, forming a shape in which MA30 is above and MA 10 is below, and its intersection position is the death intersection.
Meaning: The appearance of death cross pattern often indicates that bears will gradually occupy the market and the stock price is about to start a downward mode. At this time, you should clear the warehouse without hesitation.
Flexible use of golden fork and dead fork;
At the beginning of the rise, it showed a typical gold cross trend, and then the stock price rose step by step; In the late stage of the rise, the center of gravity shifted slightly, and then it showed a dead fork moving average shape, and the stock price also fell.
The K-line combination of "dark clouds covering the top" appeared at the high position, then the center of gravity of the stock price moved down and the moving average pattern of death crossing was played (A in the figure), and then the stock price accelerated to explore; After closing the "Morningstar" K-line combination at the bottom, it began to stop falling and stabilize. At the beginning of the rise, a golden cross moving average was made (B in the picture), and then the stock price rose steadily.
Whether it is a golden cross or a death cross, it is a signal of buying and selling. In the trend analysis, we can grasp the opportunity to enter and exit. These two kinds of intersection have high accuracy in long-term application.
The golden fork and the dead fork are of great significance in actual combat, because the golden fork and the dead fork are often the end of a band or a trend, and also the beginning of another fluctuation or another trend. After we have mastered the market significance of the golden fork and the dead fork, we must understand the significance of the golden fork and the dead fork in different periods. The intersection formed by the 60-minute chart is only a short-term opportunity, and the intersection formed by the daily chart is only a band opportunity. Only when the weekly chart forms a cross-point market can it enter a long-term rising and falling trend. Therefore, in order to obtain stable income and high winning rate, we can base ourselves on the trend of weekly chart formation, step on the band formed by daily chart, and grasp the opportunity to enter and exit with the key points of 60-minute chart.