This is a big question. Golden crosses and dead crosses are found in many technical indicators. There are moving average golden crosses and dead crosses. For example, if the 5-day moving average crosses the 10-day or 20-day moving average upward, it is called a golden cross. If it crosses downward, it is called a golden cross.

Crossing the 10-day or 20-day moving average is called a dead cross; in the KDJ indicator, when the K line crosses the D line, it is a golden cross, and vice versa; in the MACD, the M line crosses the D line.

On the contrary, it is a death cross and so on.

Generally speaking, it can be understood that the golden cross is a buying signal and the dead cross is a selling signal. Retail investors can conduct buying and selling transactions based on it.

1. The signal sent by technical indicators is just a signal. It only tells us what the dealer wants to tell us through the market. Whether what the dealer said is the truth or a lie is impossible for us to know at the time. It can only be verified in the future.

If the dealer tells a lie and the market develops in the opposite direction, the only thing we can do is to quickly adjust the original operation plan to minimize the loss.

2. The issue of effectiveness of golden cross and dead cross.

In principle, when the stock price trend is upward, the golden cross is highly effective and powerful, and the possibility of failure is reduced.

The effectiveness of the death cross is low, the lethality is small, and the possibility of failure increases.

Likewise, when stock prices are trending downward, the effectiveness of golden crosses is low...while the effectiveness of dead crosses increases.

Therefore, when trading stocks, you must first look at the trend. If the trend is good, seize the opportunity of the golden cross to earn some living expenses. If the trend is not good, seize the opportunity of the dead cross and escape quickly. This is why the ancients often said: follow the trend.

Those who go against the trend will prosper, and those who go against the trend will perish.