Good Evening / Morning Dynamic Traders
“Better to have tried and failed, than not tried at all”
Cross = S&P, FTSE 100
Following on from last nights blog which had no charts posted, I have done a bit of searching and come up with a couple of charts to explain my words written yesterday.
Trading is not a difficult thing to learn, but at the same time it is not easy and the best of us are always learning the ever changing markets.
So what is all the fuss about at present, well we had a signal indicating this fuss within the last couple of weeks that does not happen that often, in fact 3 times in the last 2.5 years. It is called the Death Cross or Golden Cross depending on which way it happens. In our case it is presently a DEATH CROSS.
Now that has made you sit up and take notice, so what is it ?
You will all be aware that the 200 EMA is a key indicator to use on our charts as one that the institutes take notice of, if we add to the chart a further moving average, in this case the 50EMA we can now monitor the charts for these infrequent yet accurate signs. If the 50EMA crosses above the 200EMA we have our “Golden Cross” and if it passes below we have the “Death Cross”
I have posted two charts each important on either side of the pond, yet both giving us the same signals, the S&P 500 from the States and the FTSE 100 from the UK.
I have marked the Golden Cross with a Gold circle and the Death Cross with a Red circle, also note the general pattern of the MACD indicator below. The 200EMA is in Blue and the 50 EMA is in Green.
On the S&P 500 we have the key crossing dates of Dec 2007, Jun 2009 & Jun 2010.
On the FTSE 100 our key crossing dates are Jan 2008, Jun 2009 & Jun 2010.
We currently have our main indicator, PRICE, below our 200 EMA and MACD pointing down, indicating further weakness.
You could place both these EMA’s on your charts that you are following and see what clues you will get ?
I do hope this has explained things a little better for you and you can now see where the markets are currently at.
Remember, sitting on your hands and not entering a trade, is a trade.
Please do your own analysis before entering a trade.
Dynamic Trader members can join our trading room here.
Trade with Passion
John Maher
Forex Analyst
Tags: General
