The Tech Quiz - Season 36

Hello friends,
It's a privilege to share my participation in the contest organized by @malikusman1 on the topic that says The Tech Quiz - Season 36. Using the contest tips below, let's look into the topic under consideration.

Source

What is the Golden Cross in crypto?

In crypto trading, before entering a trade it is important to know the direction of the market and that is where technical indicators come into play. Golden Cross is a Moving average technique where the lower MA line ideally 9 is seen crossing above the higher MA line which is also ideally 21.

When you see the lower MA line crossing the higher MA line and moving above it, you are to know that the trend of the market is about to change from bearish to bullish which means you are to enter a buy order as a trader since the asset is about to move upward.

A good example is the chart we have seen above. From the chart, you will notice that the lower MA line crossed the higher MA line which made the trend of the market change to another direction. Golden Cross tells you that it is time to buy the market.

What is Death Cross in crypto?

Just as we have the golden cross, we also have the death cross. Here the lower MA is seen moving below the higher MA. What this means is that when the MA which is 9 in the case of this sample is seen crossing and moving below the higher MA which is 21 we call that crossing death cross.

From the above image, you will see the area marked with a yellow rectangle box which shows that there is a crossing of the short MA which in our case is blue, and is seen moving below the higher MA which is gold in color in our case.

When this crossing takes place, you are to enter a short or a sell order. From the screenshot, you will notice that the price of the asset began to come down after the crossing.

How both can help us in crypto trading?

The essence of the gold and death cross is to enable traders to know when they are too long for the market or when they are too short for the market. So if you are a trader, all you need is to look for the crossing on the chart as it tells you about the next direction of the market and also helps you to confirm if you are going long or short.

With that, you can make a profit with minimal loss in trading because losses in trading are inevitable. So always prepare for loss but understanding the strategy will help you to minimize it.

I want to invite @adachukwu, @whizzbro4eva, and @steemqueeen to also join the contest in this community today.