In the previous post we learned about "Three Gold Cross Signals". Today we continue the part "Three Dead Cross Signals"
Three Dead Cross Signals it is a collection of 3 conditions following an downtrend.
• The Tenkan sen breaks below the Kijun sen,
• The Chiko span breaks below the candlestick,
• And the price breaks out of the Kumo,
Again, be careful that the price breaks out of the Kumo does not mean Three Dead Cross Signals. The right order should be 1. Tenkan sen breaks below the Kijun sen,
2. Chiko span breaks below the candlestick, then 3. when the price breaks out of the Kumo, it's called Three Dead Cross Signals. When the market reverse to the downside, and when price is breaking Kumo downwards, usually Tenkan sen is already breaking Kijunsen below and Chiko span is also breaking the candles. But there are times when price breaks Kumo but you don't see the Tenkan sen breaks below the Kijun sen and Chiko span breaks below the candlestick yet. And that's when you can realize the market is not in a right order for reversing movement.
So remember the right order of Three Dead Cross Signals and Three Gold Cross Signals.
Tenkan sen and Kijun sen cross happens relatively earlier. Chiko span break is going to be the second signal. Then Kumo breakout usually becomes the last signal.
[Buy signals]
• Kouten of Kinko Hyo = early buying signal
• Kouten of Chiko span = slightly early buying signal
• Sanyaku Kouten = late buying signal
[Sell signals]
• Gyakuten of Kinko Hyo = early sell signal
• Gyakuten of Chiko span = slightly earlier sell signal
• Sanyaku Gyakuten = late selling signal
In the following article, we will learn about some notes when using: Three Dead Cross Signals and Three Gold Cross Signals.
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