Japanese FOREX CHANNEL
Golden cross and dead cross
The trend analysis using two moving averages indicates the significant signal to buy or sell in the forex market, so called, the golden cross and the dead cross. Both of those crosses warn the approaching turning point against the market trend.
The golden cross emerges when the short term moving average breaks upward beyond the curve of the longer term moving average, which indicates the end of the down trend and the start of the new up trend. On the other hand, the dead cross emerges when the short term moving average breaks downward below the curve of the longer term moving average, which indicates the end of the up trend and the start of the new down trend.
If you are conscious to the market trend in the forex trading, both the golden cross and the dead cross will give you a basic signal where to buy or sell.
