Golden Cross is a Golden Strategy?Hello Hello Traders ,
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Here we go ,
I want to talk with yours about Golden Cross.
Defination,
The golden cross is a chart pattern with a short-term and a long-term moving average. Generally, 50-day data is used for short-term moving average and 200-day data is used for long-term moving average. This pattern can occur at any time, and the main idea is that the short-term average and the long-term average cross the long-term average from the bottom up.
Let's look at the stages of when we can decide that it is a golden cross.
Step 1 ,
⦁ During a downtrend, the short-term moving average is below the long-term moving average.
Step 2 ,
⦁ With the appearance of a trend change in the market, short-term moving averages exceed long-term moving averages
Step 3 ,
⦁ In an uptrend, the short-term moving averages stay above the long-term moving averages.
The summarize of the Steps,
The first phase requires that a downtrend finally bottoms out as the sell-off is exhausted. In the second phase, the short-term moving average surpasses the longer-term moving average, indicating a trend reversal. This is a bullish signal. In the final stage, the uptrend continues until higher prices and its short-term movements remain above the average, long-term. Until the intersection of death is seen.
When we look Our Chart ,
I examined 2 golden crosses of BTC-USDT formed between 27 July and 19 November.
First Orange circle , As you can see on the chart on July 27, the 50-day bitcoin average cuts the 200-day average from below. At this stage, we see that the BTC-USDT value has increased with the high purchases. With the death cross that took place on September 13, btc usdt went down with high sales.
Second Orange Circle, As you can see on the chart on Octobe 6 the 50-day bitcoin average cuts the 200-day average from below. The rise with high purchases shows us the effect of golden cross on coins. With the realization of the golden cross, btc usdt continued to rise above the 50-day average and saw the top point in the period on November 11th. With the death cross that took place on November 19, btc usdt started to decline.
Conclusion,
Period represents a specific time period. The most commonly used moving averages when evaluating the gold cross indicator are the 50 and 200-period moving averages. In general, larger timeframes create stronger permanent breaks.
The higher the chart time frame, the stronger and more persistent the golden cross break will be.
The long-term moving average is a strong support area when the crossover occurs. Therefore, when there is a golden cross, it is a high buy zone and at this time we can make the necessary investment in the coin.
I really hope it will be useful for you.
Make big profits!
