Death crossover refers to the fallingShort term moving averageDescending throughLong term moving average, this timeSupport lineA downward breakthrough indicates that the stock price will continue to fall and the market is bearish.The market opposite to death crossover is gold crossover. It should be noted that it is one-sided for investors to buy or sell only based on gold crossover or death crossover.Because moving flataverageJust a basicTrendline, when reflecting the sudden change of stock priceHysteresisTherefore, golden cross or death cross can only be used as a reference.
stayDaily lineArranged simultaneously with short, medium and long-term linesMoving AverageIn the figure, except for the obviousMultiple Arrangement (bull market) andshort order In addition to the (bear market), there are more intertwined situations where several lines are up and down. Here, pay special attention to the reversal signals displayed by the moving average, the most famous of which are golden cross and death cross.
"Golden Cross"
In the rising market of the stock market, the crossing phenomenon between the short-term moving averages such as the 5th and 10th day lines from the bottom and the long-term moving averages such as the 30th and 60th day lines is calledGolden cross。For example, the 10 day average crosses the 30 day average from bottom to top, forming 10Daily meanOn,30 day moving averageAt the bottom, the intersection is the golden intersection.Gold crossing is the performance of bulls. When gold crossing occurs,AftermarketThere will be someIncreaseSpace, this is the best time to enter.
"Death crossover"
In the declining market of the stock market, the cross between the short-term moving average and the long-term moving average is called death cross.E.g. 30Daily meanAnd 10 day averageWhen crossingThe 30 day average crosses the 10 day average from bottom to top, forming a "death crossover" when the 30 day average is above and the 10 day average is below."Death crossover" indicatesShort marketCome, the stock market will fall, this is the best time to come out.
Whether it is a gold cross or a death cross, it is a sign of trade in and out.stayIndividual stock trendIn the analysis of, you can grasp the opportunity of entering and exiting, and in the analysis of the index trend, you can also judge the situation of bulls and bears.These two kinds of intersection, in long-term applicationAccuracyQuite high.
Cross order making method
Moving average crossing entry conditions: when FMA crosses SMAj from the bottom, enter long;When FMA crosses SMA from the top, enter and short.
Moving average crossing departure conditions:Long stop lossIt shall be set at the lower position of the upper candlestick before crossing.Short stop lossIt is set at the high position of the upper candlestick before crossing.The stop gain should be set according to the stop loss, and should not be lower than the stop loss.It is recommended to set it as 1.5 times or 2 times of the stop loss.If another crossover occurs before the stop loss or profit is reached, close the current position.[1]
Technical indicators
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KDJ index
The three KDJ lines cross with the two DK lines upwards, which is golden crossing, on the contrary, it is death crossing.Short-termaverageCrossing upLong term moving averageIt is called golden crossing, and vice versa.But if the long-term moving average goes down or slows down at the same timeShort term moving averageThe upward crossing cannot be called golden crossing, nor can it be called death crossing.In the stock market, the gold cross represents the upward movement of an indicator with a probability of more than 50%.On the contrary, it is called death crossover.There are both moving averages and indicators. The concept of golden death intersection is the intersection of short and long.In fact, the simpler way is to look back at the history. After the two lines cross, the higher the index, the golden one, and the lower the index, the death one.Ps. Gold death crossover is best seen in combination with deviation. Too many institutions use gold death crossover as a lure.
DIF=price of the previous 12 daysaverage value-Average price in the previous 26 days.
MACD
Exponential smoothing difference moving average, 9 days of DIFaverage value(equivalent to 9 of DIFDaily mean）。
1. Judge the general trend: when DIF and MACD are positive values, the general trend isBull marketAnd vice versaShort market；2. The gold crossover between DIF and MACD is the time to buy, and the death crossover is the time to sell;3. Positive BAR changes from long to short YesSell signal, negative BAR from long to short is a buying signal;4. Top deviation andBottom deviation。When the stock price continues to reach new highs, DIF and MACD do not cooperate with each other to reach new highs or even decline, which is called top deviation and is a sell signal.When the stock price keeps falling, DIF and MACD do not cooperate with each other to reach a new low point or even rise, which is called bottom deviation and a buying signal.
KD
(1) 1<KD<100, KD<50 meansEmpty partyMarket, KD>50 is a multi-party market.(2) It is generally believed that KD valueBelow 20 is an oversold area, which can be bought on bargain;KD value above 80 isoverbought , which can be distributed at high altitude.(3) After a round of decline, the KD value is below 25. When the K line crosses the D line (gold crossing), it is a buy signal.After a round of rise,KD valueOver 85,K lineWhen threading D line (dead cross)Sell signal。 （4）Deviation signalThe generation of is a very accurate buying and selling signal, that is, when the price is higher than the previous wave, and the KD value, especially the D value, is lower than the previous wave, it is a top deviation, indicating that the future market will fall, and it is a clear selling signal.When the price is lower than the previous one, but the KD value, especially the D value, is higher than the previous one, it is a deviation from the bottom, indicating that the future market will rise, which is a clear buying signal.(5) When KD line is formed in the oversold area or overbought areaDouble bottomOr double headed, is also a buy or sell signal.(Sometimes there is a big error, especially when individual stocks are very inactive and fall for a long time,K valueIt can reach below 5;In a bull market, it is also common for the K value to reach 90 or more while the stock price does not fall, so we cannot take it too seriously).
RSI
RSIThe lower limit is 0, the upper limit is 100, and 50 is RSICentral axis, that is, theDividing line。Above 50 is a strong area (multi market), below 50 is a weak area (empty market), below 20 is an oversold area, and above 80 is an overbought area.RSI indexBuy points of: (1) W-shaped orBottom of head and shoulderWhen RSI forms W shape or head shoulder at low position or bottomBottom shapeIs the best time to buy.(2) Below 20 When the RSI runs below 20, it enters the oversold area, which is easy to cause rebound.(3) The gold cross is a buying signal when the short day RSI crosses the long day RSI upward.(4) Niu Biao Dangstock market indexOr the stock price is getting lower and lower, while the RSI is getting higher and higher, which is called Bull Deviation. At this time, the stock index or stock price is easy to reverse and rise.Selling points of RSI indicators: (1) Shape M, head shoulder top shape When RSI forms M shape or head shoulder top shape at high position or top, it is the best time to sell.(2) Over 80 When the RSI runs above 80, it enters the overbought zone, and the stock price is easy to fall.(3) Top deviation from the current stock index or share priceset a new recordHowever, RSI does not reach a new high. It is called "Top Deviation", which will be the best time to sell.(4) Death crossover When the short day RSI penetrates the long day RSI, it is called death crossoverSell signal。
DMI
When+DI breaks through - DI downward, it is death crossover and selling opportunity;When ADX and - DI rise togetherShort market；DIF, MACD<0: short market;DMI indexDMI indicator is also called trend indicator orTrend indicatorIts full name is "Directional Movement Index, or DMI". It was also first proposed by Wells Wilder, an American master of technical analysis, in his book "New Concepts in Technical Trading Systems" in 1978, to remind investors not to enter into transactions in the consolidation of the world. Once the market becomes profitable,DMI immediately guides investors to enter and exit at an appropriate time, which is one of the indicators that has received considerable attention in recent years.DIMTrend indexAlso called moving direction index or trend index.It is a technical indicator of trend judgment. Its basic principle is to analyzeStock priceThe equilibrium point of the supply and demand relationship in the process of rising and falling, that is, the cyclical process of the supply and demand relationship from equilibrium to imbalance due to the impact of price changes, so as to provide the basis for judging the trend.
Death Cross and Gold Cross
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In the moving average graph with daily, short, medium and long-term lines arranged at the same timeMultiple Arrangement (bull market) andshort order In addition to the (bear market), there are more intertwined situations where several lines are up and down. Here, we should pay special attention to the reversal signals displayed by the moving average, the most famous of which are the golden cross and the death cross.
WhetherGolden crossOr death crossover, which is itself a signal of trade in and out.In the analysis of the trend of individual stocks, you can grasp the opportunity to enter and exit, and in the analysis of the trend of the index, you can judge the trend of the bull and bear.However, in long-term application, these two kinds of intersections seem to be more thanEight Laws of GranvilleThe accuracy rate of is higher.[2]
