The Tech Quiz - Season 36

in hive-109435 •  3 months ago 

Hello friends, I welcome you to my post.


What is the Golden Cross in crypto?

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A golden cross in crypto trading and the financial markets, in general, means a bullish technical pattern that occurs when a shorter-term moving average crosses above that of the longer-term moving average. Simply put golden cross is when the shorter-term moving average is above the longer-term moving average m

The moving average is typically a 50-day moving average as the shorter-term moving average and a 200-day moving average as the longer-term moving average. The golden crossover is seen as a bullish signal that the market is moving in an uptrend which means the buyer's force is greater than the seller's force.


What is Death Cross in crypto?

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Death Cross is the opposite of Golden Cross. This means that the crypto death cross is when the longer-term moving average crosses above the shorter-term moving average. I.e. when the shorter-term moving average falls below that of the longer-term moving average. The death cross is seen as a bearish signal that the market is moving in a downtrend which means the seller's force is greater than the buyer's force.


How both can help us in crypto trading?

Both Golden and Death Cross can provide us with valuable insight and signals for crypto trading. Let's take a look at them one after another.

Golden Cross

Bullish signal
The golden cross helps us to indicate potential strong upward movement. We can use the signal to buy or open a long position.

Market sentiment: It helps us to reflect growing bullish sentiment, which can attract us to buy more assets for a higher profit.

Death Cross

Bearish Signal
This helps us to know when the market is going down and we can use this signal to sell or open a short position.

Risk management It alerts us on a possible decline in the market by prompting us to set a stop loss.

Market sentiment
It indicates a bearish sentiment which can lead us to sell off our holding before it gets liquidated.

In summary, by using both we will get to know when we are to follow the market, confirm, and when we are to enter or exit the market.

I am inviting: @kuzyboy, @entity01, and @simonnwigwe

Cc:-
@malikusman1

All the screenshots are gotten from Tradingview App.

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