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).
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?
ZoltanP
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Interestingly the second death cross on the chart acted as a Golden Cross by the time it happened
opsec_x12
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@ZoltanP, That's because that was the huge 1 day movement, black thursday
AryaGroup
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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.....
BigLava
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great EDU. check out my vision of short term for BTC/USD
Saeed966
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You are doing a great job 🤩🔥
OxEconomist
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Going down then...
pikitote
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@kenshintani look at August , FA and trend. Going up ?
Mishazhang
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@kenshintani, yes
UnknownUnicorn11558915
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Good charts; to follow the evolution of crossbreeding, FAVORITES!