Steemit Crypto Academy Contest / S15W4 - Death Cross Vs Golden Cross.

Hello and welcome to my blog. I hope you are all doing well and enjoying this new season of steemit cryptoacademy with wonderful themes that are floated every week. For this week, I choose to write task about Golden and Death cross as demanded. Let's begin without dodging

1. Explain in your own words, what is the golden crossing and what is the crossing of death?

Golden cross and death cross refer to the crossover between two moving averages and have predictive importance in the market. As the name implies, Golden cross predicts forth coming bullish trend in the market while death cross predicts forthcoming market crash.

Two moving averages, one of shorter period and another of longer period, are used for the formation of Golden cross and death cross. Golden cross is formed when the moving average of shorter period crosses the moving average of longer period from below upwards s. On the contrary, death cross is formed when the moving average of shorter period crosses the moving average of longer period from above downwards.

Shorter period moving average shows recent and quick change in the price of an asset under consideration, and it moves close to the price chart. On the contrary, longer period moving average shows farther change in the price action and is located away from the price chart.

The two most commonly used moving averages are 50 periods and 200 periods. For example, on a daily time frame, 50 periods refer to 50 days moving average and 200 periods refer to 200 days moving average. So the period of the moving average chosen depends upon the time frame that we use to visualise a Price chart.

Let's presume the use of 50 days and 200 days moving average for understanding Golden cross and death cross. Golden cross is formed when 50 days moving average crosses 200 days moving average from blow upwards. On the contrary, death cross is formed when a 50 days moving average crosses 200 moving average from above downwards.

Golden crossover and death crossover help traders in taking different positions in the market or squaring off from the market. It is, however, important to mention that none of the indicators is absolutely perfect in predicting the trend in the market; therefore, traders must never compromise with the risk reward management principles.

It is also important to know that one must not rely on a single indicator for taking any position in the market. The use of multiple indicators increases the chances of taking a successful trade. Therefore, crossovers must be used along with other indicators to increase their predictive potential.

2.- Use the BTC/USDT pair to show the golden crossover and the crossover of death, in tradingview. Also use the STEEM/USDT pair to show the golden cross and the death cross. Screenshots are required.

^{BTC/USDT GOLDEN CROSSOVER}

In the BTC/USDT chart above, I have shown Golden crossover as can be seen by crossover of short period moving average over long period moving average. We can see the increase in the price of BTC after the crossover.

^{BTC/USDT Death CROSS}
In the BTC/USDT chart above, I have shown death crossover as can be seen by the abobe downwards movement of small period moving average over long period moving average. Further we can see the decrease in the price of BTC thereafter.

^{STEEM/USDT GOLDEN CROSSOVER}
In the STEEM/USDT chart above, Golden crossover between two moving averages is followed by an increase in the price of STEEM.

^{STEEM/USDT Death CROSS}
In the STEEM/USDT chart above, we can see that the death cross was followed by crash in the price of STEEM.

3.- What is the difference between the golden crossover and the death crossover?

A golden cross is formed when a moving average of a shorter period crosses the moving average of a longer period from below upwards. On the contrary, the death cross is formed when the moving average of a shorter period crosses the moving average of a longer period from above downwards.

Golden cross predicts the forthcoming bullish trend in the market while death cross predicts the forthcoming bearish trend in the market.

Golden cross up ho is used by traders to make long positions in the market or to exit the shot positions, while death cross is used by traders to take short positions in the market or exit the long positions in the market.

4.- In addition to these two chartist patterns, what other indicator would you add to make the technical analysis more effective at the moment of taking a decision.

Having mentioned earlier that no indicator is absolutely perfect in predicting the trend in the market and therefore, it is not the sane practice to dependent on single indicator for taking any position in the market.

Use of multiple indicators increases the chance of taking a successful trade because multiple confirmations are achieved through the use of multiple indicators. There is no golden rule in choosing the second indicator to be used with these chart patterns, and therefore, it depends on the experience and comfort of a trader to use any particular indicator that suits their interest and strategy for trade execution.

I prefer to use the Relative Strength Index (RSI) along with golden and death cross. However, as for my experience is concerned, I do not take trades on the basis of either of these. I use these indicators to be doubly sure about the signal that they give and for the execution of trade, I use price action.

^{DOT/USDT Death cross and RSI}

In DOT/USDT chart above, a death cross on chart is followed by similar cross on RSI. We can see that cross on RSI has occured before it took place on overlapping indicator on price chart. So the RSI signal is confirmed by death cross. So we got a double conformation to execute a trade.

Thanks