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Deadcross is a phenomenon that the short-term moving average line goes down the long-term moving average line.
In general, it is noted as a signal that indicates the fall trend, market deterioration, and sales pressure.
However, it is not always lower because of the dead cross. In the market, it is important to see a lot of damashi in the market.
In this article, we will organize the meaning of dead cross, the difference between golden cross, the view for beginners, and the attention.
What is Deadcross?
Deadcross is one of the technical analysis used in stock price charts.
Check whether the market is weakened using the moving average line.
Moving Average Line represents the average stock price for a certain period of time. It is used to make it easier to see trends by taking up the stock price of daily.
Typical mobile average lines include:
- 5 Day Moving Average Line
- 25 Day Moving Average Line
- 75 Day Moving Average Line
- 200 Day Moving Average Line
Deadcross refers to a state in which short-term lines go down long-term lines.
Dead Cross Shape
Deadcross is the shape of the short-term moving average line down the long-term moving average line.
The short-term line is easy to calculate the stock price, so the stock price is lower. If the short-term line falls below the long-term line, the short-term trend is weaker than the long-term trend.
The image is as follows:
Short-Term Moving Average Line ↓
Long-term Moving Average LineIn general, short-term deterioration, increased sales pressure, and the possibility of fall trend is conscious.
Why it is seen as a drop signal
Deadcross is called a drop signal because it indicates that the stock price is weak.
In the rising market, short-term line is higher than the long-term line. However, if the stock price begins to fall, the short-term line may go down, and the long-term line may go down.
This state is easy to see as follows:
- Inc ing trend is weak
- The amount of investors is worse
- Sell pressure is strong
- Possible to move to lower trend
However, this is not a definitive future forecast.
Golden Cross
Golden Cross is the opposite of Dead Cross.
Golden Cross is a phenomenon that the short-term moving average line goes up the long-term moving average line. In general, it is seen as a rise signal.
| 指標 | 意味 |
|---|---|
| Golden Cross | Short-term line up long-term line |
| Dead Cross | Short-term line goes down the long-term line |
For beginners, the Golden Cross is an upward momentum, and the Dead Cross is an indicator to confirm the downward momentum.
What scenes will happen?
Deadcross makes it easy to occur when the stock price falls.
For example, the short-term line will be lowered in the market, where the rise trend ends and the stock price begins to fall. After that, when the short-term line goes down the long-term line, it becomes a dead cross.
In addition, the dead cross may occur even in the lateral market. If the direction of the market is weak, the moving average line may be crossed over and there may be more damass.
The dead cross is often seen even after a sudden drop. However, at that time, the stock price is already high, and the signal may be delayed.
For beginners
The first thing you want to remember is that deadcross is not an absolute sign of sale.
Stock prices may be relapsed after the dead cross. There is also a damasi that is the original trend immediately after the fall.
When checking, it is easy to judge that the following elements are also seen together.
- Is the production capacity increased?
- Is stock price settled under long-term line?
- Is there any material in business performance or news?
- Is the whole market weak?
- Isn't it too fast?
In particular, the trend worsening becomes more conscious when the fall is followed by the cross with the volume.
Long-term investment
It is important that long-term investments do not respond excessively to dead crosses.
Short-term moving average line crosses occur multiple times in N投資 and in-depth investment. When buying and selling each time, long-term policy will be easier to break down.
For long-term investors, it is more practical to use Deadcross as a material to check the market conditions rather than the trading decision itself.
How to use
Short-term traders may use dead crosses to confirm their interest, loss, and trend change.
On the other hand, medium- to long-term investors may be used to see the atmosphere of the market as well as individual symbols.
For example, if a dead cross appears in the main index, the overall market may be weakened. However, please check the interest rate, exchange rate, performance, supply and demand without judgment alone.
Common misunderstandings
Deadcross is not a sign of 落.
Because it is a famous indicator on the market, there are cases where bad materials are already woven into the stock price. In addition, short-term lines may end with temporary cross because they are easy to receive noise.
Deadcross is a useful indicator, but it is not universal. It is important not to judge by one sign as a beginner.
まとめ
- Deadcross is a phenomenon in which short-term moving average line goes down long-term moving average line
- Generally seen as a drop signal
- Golden Cross
- Dangerous judgment alone because there is also damashi
- Long-term investments do not respond excessively and use them to check the market environment
It is easy to use by beginners to understand the dead cross as an indicator to see the trend of the market.