The golden cross occurs when the shorter term moving average rises and crosses above the longer term moving average. One of the most common golden crosses used is the 20-period and 50-period moving average crossover. A golden cross is often associated with sharp upward price movement and can be used as a buy signal in the belief that a significant uptrend will follow. The position is maintained until the shorter term moving average crosses below the longer term moving average.
When you are bullish on the market, the long synthetic futures strategy is ideal as it will not be affected by changes in volatility. Profit increases as the market rises. Profit is based strictly on the difference between the exit price and the synthetic entry price. Selling a Put effectively removes the risk of time decay for the long call position.
|Trading Symbol||OZS H7|
|Trading Symbol||OZS H7|
|Trading Symbol||ZS H7|
|Contract Expiry||March 2017|
As a trend following strategy, substantial upside can be expected. The strategy’s initial target should be set near the next resistance level (1050 - end of January’s overlap) but the position can remain opened until the shorter term moving average crosses below the longer term moving average (1053).
If the price falls below the first significant support level set at 1026, the position can be closed at a limited loss.
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