● Cross analysis (golden cross, dead cross)

1.Cross analysis is a golden cross where the current moving average breaks the long-term moving average from bottom to top.

2.There is a dead cross where the short-term moving average breaks downward from the long-term moving average from top to bottom.

● Golden Cross

1.In the golden cross, the short-term moving average touches the long-term moving average from bottom to top, and this moment is interpreted as a strong buy signal.

2.If the short-term moving average exceeds the long-term moving average, the short-term moving average must rise.

3.This means that the price is good in the short term. A golden cross is considered a buy signal, assuming that the short-term upward trend continues.

4.At this time, you should pay attention to changes in trading volume. This is because an increase in trading volume is a strong buying signal.

5.A strong buy signal means that there is a high possibility that it will eventually turn into a bull market.

● Dead Cross

1.A dead cross, on the other hand, refers to the short-term moving average crossing the long-term moving average from top to bottom. In other words, the short-term moving average is falling.

2.Dead cross is accepted as a signal of transition to a bear market on the premise that the short-term downward trend will continue.

3.If you look at the trading volume trend during a dead cross, it generally shows a decrease.

*Caution regarding cross analysis*

1.Contrary to theory, it is common for prices to fall after a golden cross occurs. This is a reaction to the short-term rise.

2.In a short period of time, there is a power that is conscious of price increase. As the price rises, profit-making products aimed at making profits from sales also appear at this time. Therefore, short-term declines often occur.

3.You should be careful that goal crosses that appear in a bear market can actually be a selling signal, and in conclusion, you should know that there are real and fake cross points in this cross analysis.