EXCAVO

Golden and Death Crosses

Education
BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
The most popular and simplistic way to use moving averages is to divide the market into a bullish or a bearish one based on a cross. Even today, financial newspapers refer to these crosses as being really important and defining for a market. In order to look for a golden or a death cross, a daily timeframe needs to be open on the financial product one is interested in trading. In our case, let’s use the daily chart on the BTC /USD. The next thing to do is to apply two different moving averages on the chart: one that takes into account 100 as a period (MA100), and one that considers 50 as a period (MA50). This means that MA100 is plotting a value based on the values of the last 100 days, while the MA50 one is taking into account only the last 50 days.

The overall idea to interpret a market is quite simple: When the MA50 moves above the MA100, or it makes a cross, this cross is called a golden cross. It means that from that moment on the overall market turned bullish , and so buyers should dominate that market. The opposite is true as well: When the MA50 crosses the MA100 to the downside, the cross that is formed is called a death cross, and signals a bearish environment in the period ahead. The BTC /USD chart below shows both golden and death crosses, as the MA50 (the red line) crosses above or below the MA100 (the white one).

Best regards EXCAVO

Comments

Isn't a golden / death cross a cross of the 50 & 200-day moving averages AND price action being above or below the 200-day to confirm bear or bull market?
+19 Reply
Interestingly the second death cross on the chart acted as a Golden Cross by the time it happened
+6 Reply
opsec_x12 ZoltanP
@ZoltanP, That's because that was the huge 1 day movement, black thursday
Reply
Sir, you explained Moving Averages...so cogently. I thank you!!!!!! I , am sharing with my friends.
Can I apply this MA100/MA50 (Death/Gold Cross) to any stock/FX pair, etc.....to trade? I just want simplicity.....
+4 Reply
great EDU. check out my vision of short term for BTC/USD
+2 Reply
You are doing a great job 🤩🔥
+1 Reply
Going down then...
+1 Reply
pikitote kenshintani
@kenshintani look at August , FA and trend. Going up ?
Reply
Mishazhang kenshintani
Reply
Good charts; to follow the evolution of crossbreeding, FAVORITES!
+1 Reply