Among the many technical indicators used by investors, the moving flat** is favored for its simple yet effective characteristics. Generally speaking, a separate line chart will be formed with the size of the setting period, and in the actual analysis of trading, many investors will use the interaction of the two ** to judge the direction of the trend, and also find a suitable entry opportunity.
Crossover is an important phenomenon based on the interrelationship between these two **. When a short cross crosses over a long one, a cross is formed, which is often seen as a signal that the market may be in an uptrend, and on the contrary, it may signal that the market will go down. In practice, investors can more accurately judge the direction of the trend and find the right trading time by observing these crossover phenomena.
So how to use the cross?**Crossover" (golden cross), refers to the rising short-term moving flat** from bottom to top through the rising long-term moving flat ** cross, at this time the pressure line is broken upward, indicating that **will continue**, optimistic. Crossover refers to an upward breakout of pressure. Generally, the solid line represents the long-term moving flat**, the dotted line represents the short-term moving flat**, and the short-term moving flat** and the long-term moving flat** form two intersections.
In fact, the crossover itself is not strictly a trading signal, it does not provide an entry point, it can only indicate that the market has entered the bullish zone and traders need to find the trade setup on their own.
What is a trending product?To put it simply, as long as the characteristics are biased towards a one-sided trend, you can try to use a strategy that looks at crossovers, such as *** trading. Many investors apply some consolidation types of commodities to the crossover strategy, and after finding that they have lost a lot of money, they believe that this strategy cannot be used, which is actually a very wrong trading concept. It's not that the strategy doesn't work, it's just that the selected products are not applicable, and changing the trending products may be able to play a good role!
However, it is still necessary to make a special note that it is not a consolidation type of commodities that are completely inapplicable, and there must be no problem with trend types of commodities, whether a set of strategies can make money in the market, nor can it be completed by a simple ** cross goods death cross, profit ultimately depends on the expected value, a set of strategies for long-term use, with a reasonable fund management model, is the right way to invest. In addition, the cycle of ** is not a uniform value, the characteristics of each commodity will have a suitable parameter period, it is recommended that investors choose the appropriate value for each commodity, in order to maximize the effectiveness of the crossover strategy.
The above information is provided by WCG Markets.
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