When the K line crosses the D line from the bottom up: the K...

When the K line crosses the D line from the bottom up: the K line crossing the D line is a gold fork, which is a buying signal. However, whether or not a gold fork should be bought depends on other conditions.

The first condition is that the position of the gold fork should be relatively low; it is in the oversold area; the lower the better.

The second condition is the number of times it has crossed the D line. Sometimes at low levels, the K and D lines cross back and forth several times. The minimum number of intersections is 2; the more the better.

The third condition is the position of the intersection point relative to the low point of the K line and the D line. This is what is commonly known as the “right side intersects” principle. The K line only intersects the D line when the D line is already rising, and is much more reliable than the D line when it is still falling.