"Buy a golden cross, sell a dead cross" is a trading principle familiar to retail investors. It generally appears in KDJ technical indicators and MACD technical indicators.
Today I will mainly introduce in detail the usage of the golden cross and dead cross of MACD, which is known as the king of indicators.
The golden cross refers to an intersection formed by the fast-axis generally green line (DIF line) in the MACD indicator passing through the slow-axis general yellow line (DEA line) from below. The dead cross refers to the intersection point formed by the green line (DIE line) in the MACD indicator from below. An intersection formed by crossing the yellow line (DEA line) from top to bottom.
The golden cross and the dead cross are in different positions, and the information they respond to is different, and traders' operating strategies will also be different.
The figure below takes BTC2022.11–2023.5 as an example:
1. Low golden cross (Figure 2)
The low golden cross refers to the golden cross that appears below the zero axis. This refers to a small rebound after the currency price drops to a certain extent. It is also a "bronze" buying point at this time. Traders can consider buying and strive for the ultra-short term. , but I usually wait and see during the first golden cross.
2. The golden cross near the zero axis (Figures 4 and 7)
The golden cross near the zero axis refers to the golden cross near the zero axis above or below. It means that in the long-short competition, the number of long parties continues to increase, leading to the end of the adjustment market and the beginning of the rising market. Traders can buy with confidence at this point. .
As shown in the figure above, near the zero axis, the green line in MACD crosses the yellow line from below, forming a golden cross, which starts an upward trend in currency prices and is an opportunity for traders to buy.
3. High-level golden cross (Pictures 6 and 8)
The high-level golden cross refers to the golden cross that appears above the zero axis. The high-level golden cross generally means that the market has risen sharply after the low-level golden cross, and after a short period of correction, the upward trend has started again. Generally, the increase is smaller than the low-level golden cross. of increase.
4. Low dead cross (Figure 3)
The low dead cross is the dead cross that appears below the zero axis. The low dead cross means that during the decline, after a period of rebound, the market maker is not optimistic and the market continues to fall. Traders should wait and see with short positions.
5. Dead cross near the zero axis (Figure 1)
The dead cross near the zero axis refers to the dead cross formed close to the zero axis. Before that, the market has fallen, and the short side has accumulated to a certain extent near the zero axis. Once the zero axis dead cross is formed, the short side's power is released. As currency prices continue to fall, traders should continue to wait and see with short positions.
6. High dead cross (Figure 5, 9)
The high dead cross refers to the dead cross that is formed away from the zero axis. It generally occurs after the currency price has undergone a certain correction, that is, after the high golden cross, the currency price is suppressed and begins to decline. During the downward trend, traders mainly clear positions.
The above are all for spot analysis. If you need to use this indicator for contracts, please conduct a detailed review and summary based on the above analysis of the spot entry and exit points, and formulate your own trading logic and trading experience before using the contract!
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