"The tree of patience produces golden fruits"
Moving average
Japanese people, like Westerners, regard the moving average as an important trading tool. There are many moving average technologies in Japan, including gold cross , death cross , difference index, moving average divergence, etc. My own research and discussions with Japanese traders show that short-term traders in Japan prefer to use the 5-day, 9-day or 25-day average, while long-term traders prefer the 13-week, 26-week or 75-day and 200-day moving average. But this is generally speaking. Like Western traders, Japanese investors each have their favorite moving averages, which are different.
Golden Cross and Death Cross
Example 1:
Japanese people like to use long and short term two moving averages, for example, some people will use a 13-week moving average and a 26-week moving average. As shown in the figure below, if a relatively short-term moving average (this length is relative, so the word "relative" no longer appears in the following statement) crosses another long-term moving average, it is regarded as a long signal, and the Japanese call this crossing "golden crossing"; the death crossing means that the short-term moving average crosses the long-term moving average, which is a short signal.
Example 2: Disney weekly line
is shown in the figure below, the 26-week moving average is shown as a solid line, and the 13-week moving average is a dotted line. In July 1992, the short-term moving average crossed the long-term moving average, forming a short signal. In November 1992, the 13-week moving average crossed the 26-week moving average, completing a bullish golden cross. In May 1993, an hanger line (which forms a short-swallowing pattern with the candlestick line of the subsequent trading week) indicated that the market could be corrected, confirming that it was a previous death cross.
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