In order to understand the stock market death cross, there’s an important concept called a crossover which first has to be understood. Consider the crossover an essential foundation for reading a death cross – without this important charting event, no reading can take place. So what is a crossover? A crossover occurs when a security intersects one of its key technical indicators. The key indicators used to predict future movement of a stock vary, but the daily moving average continues to hold sway among traders and investors. An example of such a crossover would be when a security – i.e.
What is technical analysis? It’s the process of analysing price movements (past and present) of an asset in hopes that it can give us some indication on where it might trade in the future. Generally, this done by observing a chart of the security when looking to buy stocks online. Why should you care? Since most discretionary stock trading consists of having an opinion on the future direction of a security, it’s important to have tools that help us generate ideas that provide an edge. Technical analysts makes a couple of assumptions Price