How to Find Better Trading Opportunities using the Golden Cross and Death Cross
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Assalam-o-Alaikum Steemians !
I'm @moneyster, a professional level Cryptocurrency investor and an analyser. As usual, today I thought to share another Crypto-related experience with you. I hope this article will be considerably beneficial for all the Steemians in this community
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Golden Cross and Death Cross can be defined as popular Trading strategies that we can use for getting better Trading Opportunities. On the other hand, we can say that these are the best points which consist of considerably high liquidity. So, we have the ability to use these specific zones to place better entry points with the help of proper confirmations.
Basically, both Golden Cross and Death Cross are created by using two higher and shorter moving averages. As the condition of a Golden Cross, the shorter moving average should be crossed above the higher moving average. As the most popular higher and shorter moving averages, we can take the settings of 200 and 50-day moving averages.
As the condition of a Death Cross, the shorter moving average should be crossed below the higher moving average. As the most popular higher and shorter moving averages, here we can also take the settings of 200 and 50-day moving averages. However, some of the Traders are using 200 and 55-day moving averages as the configuration.
However, even if the above-explained conditions are met, still there may be some variations according to the specific market conditions such as Good news or Bad news. At the same time, the market makers are highly interested in these zone as it consists of higher liquidity. Therefore, we should get proper confirmations to take our entry at the exact point.
Golden Cross and Death Cross are better Trading opportunities in a market to get higher rewards as compared to other market conditions. If we need high liquidity in the market, we can use these Golden Cross and Death Cross zones for accomplishing it. When we Trade Cryptocurrencies with the help of a Golden Cross or a Death Cross, we can easily place our Stop Loss at the higher Moving Average as a better risk management option. Golden Cross is a better buying opportunity in a market to buy assets without a relatively low risk. At the same time, Death Cross is a better selling opportunity to sell our assets or take an entry for a sell short order. We have the ability to take these Golden Cross and Death Cross signals as a better confirmation to know about the trend reversal. Therefore, we can easily enter or exit from the market with the help of the Golden Cross and Death Cross.
First of all, I will add both 100 and 55 Moving Average Indicators to my Crypto Chart using the TradingView platform. Then we can go to "Indicators" thought to tool panels and search "MA" in the giver search bar. We have to click on it two times as we need two MAs for our chart. Below I have included a screenshot to demonstrate adding the Moving Average Indicators to our chart.
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Here I have taken an example of the best selling opportunity that I got from Death Cross. Here I have changed the Green Moving average line as the 50 MA and the Red moving average line as the 200 MA. When the Green line is crossing below the red line, we can get it as a basic selling opportunity as it fulfils the requirement of a death cross.
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Below is an example of the best buying opportunity that I got from the Golden Cross. Here I have changed the Green Moving average line as the 50 MA and the Red moving average line as the 200 MA. When the Green line is crossing above the red line, we can get it as a basic buying opportunity as it fulfils the requirement of a golden cross.
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This is the most basic way to use both Golden Cross and Death Cross as a trading strategy. Importantly, here we should use a better risk management method as these zones are highly volatile zones. At the same time, these are the best zones that we can use for getting high rewards as compared to risk. However, we can increase the accuracy of these signals by combining them with another indicator such as RSI.
I have studied the below-sourced articles to further study these topics and I have explained all the above facts in my own words and experience.
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Twitter Shared
https://twitter.com/moneyster12/status/1523346009392582656?s=20&t=P4qlerMi024CL-IUgRTZUA
This is another great explanation of Indicator, the moving average helps traders determine the GC and DC in a chart pattern, this will assist the trader to know the best time to enter and exit the market.
I love how you have simply analysis it in details, very straightforward.
Thank you for sharing
Thank you very much for your detailed and valuable comment on my article. I really appreciate it from the bottom of my heart.
Thank you for contributing to Learn with Steem. This post has been curated by@reminiscence01 using @steemcurator09 account. We encourage you to keep publishing quality and original content in the Steemit ecosystem to earn support for your content.
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Thank you @reminiscence01 for your support. Your encouragement is highly appreciated.
Thanks for sharing with us this useful information. I will take my time to look deeper into what you have shared.
You are most welcome and I invite you to try it by following all the risk management methods. If you follow a demo trading practice, then it will be better.
Golden Cross and Death Cross is a very simple way to enter a trade. If Golden Cross and Death Cross are well understood, then I think traders can gain and succeed
Yes, both are very simple but reliable at a certain level. Thank you very much for adding some external facts to my article. It increases the quality of my article.