Crypto Academy / Season 3 / Week 5 - Homework Post for [@yousafharoonkhan] Death cross & Golden cross, How to use Binance P2P trade by @rexxalo

in hive-108451 •  4 years ago 

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Question No 1:
Define Death Cross and Golden Cross in your own words. And what is the significance of DC and GC in trade? And what effect do these two have on the market? (in your own words.)
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Definition of Death Cross & Golden Cross

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moving average

A moving average is an indicator that shows certain important data on a chart by identifying averages of data, to help a trader ascertain the average price and a summary of the price action. The moving average is represented by a line, and the moving average can be regulated by the length of time or period that is being measured. The lower the length of time or the smaller the period, the closer the moving average line will be to the candles on the chart. This is because shorter period lines react faster to any change in price than longer period lines.


The Death cross and Golden cross are indicators that are formed when a long moving average crosses a shorter moving average. Mostly, the length used as long when searching for death or golden cross is the 200 day period while the length commonly used for the short period line is the 50 day period.


DEATH CROSS

A death cross happens when the short period moving average (50-days) crosses from above the long period moving average (200-days) to go under it, the death cross is usually an indicator of a trend reversal, from a bullish trend to a bearish trend, and also indicates that the sellers in the market are overpowering the buyers. It is a reliable indicator for spotting the new bearish trend.

GOLDEN CROSS

The golden cross is practically the opposite of the death cross. It is spotted when the short period moving average (usually 50-days) crosses from below the long period moving average (usually 200-days) to go above it. The Golden cross indicator is also a strong indicator for trend reversal and shows that a bullish trend is currently brewing. It is also very reliable and tells the trader that the buyers in the market are gaining strength against the sellers.

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Question No 2:
Explain the points given below.

  • How many days moving average is taken to see Death cross and Golden cross in the market for better results and why?
  • How to see the death cross and golden cross on the chart.
  • Explain the Death cross and Golden cross on the chart, (screenshot necessary)

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How many days moving average is taken to see Death cross and Golden cross in the market for better results and why?


I have mentioned it before that the most appropriate length of days used on the moving averages that are used to depict a death cross and a golden cross is 50-days period for the shorter period moving average which is more sensitive to price action and 200-days period for the longer period moving average which has slower reactions to the changes in price.

The death cross and golden cross indicators have to use these two contrasting periods to properly indicate long-period trend changes.


How to see the death cross and golden cross on the chart.


To properly answer this question I will making use of the tradingview website, they are very reliable and have a wide variety of charts available.

FIRST STEP:

search for tradingview on a preferred search engine, I used google as you may notice below.

[Beginner Course] Steemit Crypto Academy Season 3 Week 5  Initial Dex Offering (IDO) homework by @rexxalo (1).png

SECOND STEP:

now when the site has loaded, locate "chart" on the beautiful tradingview home interface to open the charts of a preferred crypto pair

[Beginner Course] Steemit Crypto Academy Season 3 Week 5  Initial Dex Offering (IDO) homework by @rexxalo (2).png

THIRD STEP:

now the chart has loaded, I already had a preloaded chart, but we are going to be using the AXSUSDT pair for this illustration, so at the top left of the screen, locate the box that holds the crypto pairs and select it.

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FOURTH STEP:

Now a dialogue box appears, and here we search "AXS" and select the AXSUSDT pair to open the chart.

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FIFTH STEP:

Now the chart has loaded, we locate the indicator box at the top left of the screen in order to find the moving average indicators we need.

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SIXTH STEP:

when we do this, a dialogue box for indicators comes up, and we search "moving average" and select the right option among others there. We need two moving average lines, so we double-click the moving average option.

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SEVENTH STEP:

Here we now have to adjust both of these moving averages by following the arrows below and finding the "settings" option for the indicator at the left side of the screen.

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When we select the "settings" option, a dialogue box loads, and for the first one, we input "50" as the period and also adjust the color of the line

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I think I like yellow😂

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we do exactly the same thing for the second moving average, but instead, we input 200 in the length area and maybe a change of color is needed to properly distinguish between the two.
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let's go with blue shall we?😂
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Now below we have the full chart, but I have adjusted it to a 45 minutes time frame. we can clearly spot the death cross and the golden cross, and how they effectively affect the price action of the chart.

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DEATH CROSS


As I have explained before, in this indicator, the more dynamic 50 day moving average goes from above, crosses and goes under the longer 200-day moving average and forms a cross. now notice below how this cross forced price down. One thing to note is that even as accurate as it usually is, it can be incorrect sometimes like every other indicator.

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GOLDEN CROSS


As I have explained before, in this indicator, the more dynamic 50-day moving average goes from below, crosses, and goes above the longer 200-day moving average and forms a cross. now notice below how this cross forced the price up. One thing to note is that even as accurate as it usually is, it can be incorrect sometimes like every other indicator.

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  • What is Binance P2P and how to use it?
  • How to transfer cryptocurrency to p2p wallet?
  • How to sell cryptocurrency in local currency via p2p (any country or coin)(screenshot necessary to verify account)

Binance is an exchange platform where crypto assets can be traded and exchanged. It is one of the most used and popular exchange platforms for crypto, and it has been improving in services it offers its users

The p2p service means peer to peer. It is a feature on finance that aids users to buy crypto assets with fiat currency, and sell crypto assets for fiat currency. It connects one user to another and does not charge anyone for transactions, that is, it doesn't use transfer fees.


HOW TO USE BINANCE P2P


FIRST STEP:

Open spot wallet to see what assets you have and which you can sell. then click on the transfer button and select the p2p wallet. I have BTC so I choose max and transfer all my BTC to my P2P wallet and select to go on to P2P trading

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SECOND STEP

when you transfer all your assets to the p2p wallet, make sure you are selling, and make sure you're selling the right crypto asset, then go on to filter and put in the amount you wish to sell, and how you wish to receive payment. after you do this, close the dialogue box and head on to choose a vendor and sell.

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THIRD STEP

After doing this, you fill in the amount you wish to sell' I chose all so I clicked on max as the arrow implies and then you confirm payment method and sell btc. after some dialogue and other confirmations, you confirm the sales and there you go. all done!

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p2p has some advantages like it has no fees
p2p has some disadvantages like it sometimes can take a lot of time to complete transaction

CONCLUSION

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Doing this homework was very informative for me and I have been really busy but I hope I provided enough information to satisfy the questions asked. special thanks to @yousafharoonkhan

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Season 3 | intermediate course class week 5

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