Among the **, I don't know if you have heard of the so-called death cross? And how much do you know about moving the ** death fork? Today, I will give you a detailed introduction.
Death handoverA cross is a pattern that is the opposite of a golden cross, which usually occurs some time after an uptrend reverses to a downtrend. The original uptrend has come to an end, and then a trend begins to form, causing a short-term U-turn down until it falls below the long-term one, thus forming a "death cross".
2. The death cross is composed of two moving flats, a short ** from top to bottom through a long **, and the long ** moves down at the same time. As shown in Fig
Since a death cross represents a signal to start a ** trend after a trend reversal and a period of confirmation, a death cross is often considered oneSell signal
Technical characteristics of the Death Cross.
1. The one with a shorter period of downward crossing has a longer period.
2. The formation of a cross so ** downward.
3. It can appear in any trend.
The technical implications of the death cross
1. When the stock price or index shows a downward trend, and the short and medium term ** death cross, this often indicates that the stock price or index will decline further, and traders should clear their hands in a timely manner.
In particular, this bearish signal is strengthened by the formation of a bearish arrangement in the medium and long term, and the death cross formed by the short and medium term.
In a downtrend, a death cross is a strong sell signal, and it is usually a wise choice for investors to choose to stay out of the market in such situations.
1. The medium and long-term ** will turn from upward to downward, and the medium and short-term ** will form a death cross near the medium and long-term**, and should resolutely leave the market.
The medium- to long-term** shift from upside to downside indicates that the long-term uptrend has turned into a long-term downtrend. At this time, the short-term ** formed a death cross, indicating that the long-term, medium-term, and short-term ** sell signals resonated, and the time and magnitude of the market outlook should not be underestimated.
The sell signal from the death cross also has the effect of a peak reversal. If the trader can't get out in time, there is a good chance that he will be on top of a high mountain.
2. The formation of a death cross in the medium and long term often indicates that there will be a large decline in the market outlook, and traders should continue to wait for short positions.
Due to the characteristics of lagging behind, after the formation of a death cross in the medium and long term, the stock price or index has often been a large space, and sometimes even begins to rise.
Lag means stability, and most of them tend to slide long distances on ramps after forming a death cross in the medium to long term.
Short-term death crossovers during a long-term uptrend or medium- and long-term bullish alignment are mostly caused by stock price corrections. Traders can hold the stock or reduce their positions in an appropriate amount.