The long-short watershed of technical indicators is a key point in the market or other markets. It represents the shift of power between the bulls and the bears, and is the key to the confirmation and turning of the trend. When the bullish and bearish watershed breaks through to the upside, it usually means that the bulls are strengthening and the market is bullish, indicating the formation of a trend. On the contrary, when ** falls below the long-short watershed, it indicates that the bears have the upper hand and the market bearish sentiment is strong, which may mean the beginning of the ** trend. From the above figure, we can see that the five technical indicators synthesized into the five-finger golden death fork is also a very important factor, if it appears in the long-short watershed, the big yang cover yin within the range of the five-finger death fork, we still have to give up. Only the big yang and yin that appear on the long-short watershed, and the big yang covering yin within the range of the five-finger golden cross, is what we hope for the most.
In addition, the long-short watershed can provide important levels of support and resistance. When the bullish and bearish watershed breaks to the upside, this area may become support for the follow-up, and when the retracement reaches this level, it may attract buying to enter the market. Conversely, after breaking the long-short watershed in the direction of **, this area may form a follow-up resistance, and when *** reaches this level, it may encounter selling pressure from sellers. A breakout or reversal of the long-short watershed is also often used as a buy or sell signal. When the bull-short watershed breaks through to the upside, it is a clear signal that investors can consider entering the market to go long. And when ** falls below the long-short watershed, it can be seen as a sell signal, and investors can consider shorting or reducing their positions. It is worth noting that the long-short watershed is often repeatedly tested and confirmed by the market. If multiple tests fail to break through this watershed, then this could be a signal of a ** or trend shift. This repeated testing not only strengthens the long-short watershed, but also provides investors with more trading opportunities. However, the long-short watershed is not a perfect tool, and market movements are still influenced by a variety of other factors. Therefore, investors need to consider other technical indicators, market sentiment, fundamentals and other factors when using the long-short watershed for analysis and decision-making. 