Assalam o Alaikum
I hope you all are doing great by the grace of Allah Almighty. I'm fine too. Today I am going to take part in the contest that is organized by @malikusman1 in steem4Bloggers community.
What is Golden cross in crypto. |
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In the context of cryptocurrency a "Golden Cross" is a bullish technical analysis pattern indicating the potential for a major rally. It occurs when a short term moving average crosses above a lot ng term my moving average. Short term moving average is typically 50 day moving average. Long term moving average is usually the 200 day moving average. The Golden Cross happen when the 50 day crosses above the 200 day. The price is in a downtrend with short term below long term. The short term starts rising and eventually crosses above long term. This is seen as bullish signal. The Golden Cross is widely regarded bullish signal by traders. The occurrence of Golden Cross can attract more traders and investors. Traders may use the Golden Cross as an entry point for long position. Golden Cross is not foolproof. Traders often use it in conjunction with other technical indicators to avoid risk. Not all Golden crosses results in significant price increases. By the time Golden Cross forms a significant portion of the uptrend may have already occurred.
What is Death cross in crypto. |
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In cryptocurrency trading a "Death Cross" is a bearish technical analysis pattern indicating the potential for a major self off. It occurs when short term moving average crosses below a long term moving average. Death Cross price is in an uptrend. The short term starts declining and eventually crosses below long term. After the Death Cross the asset typically enters downtrend. It is often seen as confirmation that long term has ended and new downtrend has begun. The occurrence of Death Cross can attract more traders and investors. Traders may use the Death Cross as a signal to exit long position. The effectiveness of Death Cross can vary among different cryptocurrencies. Not all Death Crosses results in significant price decline. Moving average are lagging indicators. They are based on past price data.
How both can help us in crypto trading? |
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The Golden Cross and Death Cross are two pivotal technical analysis indicators that can significantly aid crypto traders in making informed decision. GOLDEN CROSS signals the beginning of an upward trend. Traders use this to enter in the market. The 50-day moving average to 200-day moving average is often viewed as an ideal entry point for buying. Golden Cross give traders confidence in strength and longevity of bullish trend. Traders often use other indicators like Relatives Strength Index and Moving Average Convergence Divergence. Traders can't may immediately they wait for a confirmation. Setting stop loss levels below key support levels and take profit targets based on historical resistance level can control risk. DEATH CROSS signals the beginning of downward trend. It often viewed as an ideal exit point for selling. Death Cross can serve as a warning signal to reduce exposure. Similar to Golden Cross traders often use other indicators to confirm Death Cross signal. Instead of selling at once traders may scale out of their position. Traders entering short position when the Death Cross is confirmed. Place stop loss orders above key resistance level to protect against sudden market reversals. Both Golden Cross and Death Cross can give false signals especially in volatile markets like cryptocurrencies. Consider the broader market condition. These indicators can behave differently in bull market compared to bear market. They pay attention to trading volume. High volume during Golden Cross confirm bullish trend and high volume in Death Cross confirm bearish trend.
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@jannat12
@sahar78
@mateenfatima
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