Steemit Crypto Academy | Season 3: Week 5 || Death cross & Golden cross, How to use Binance P2P trade by @olaspecial
Define Death Cross and Golden Cross in your own words. And what is the significance of DC and GC in trade? And what effect do these two have on the market?(in your own words.)
it is an important technical indicator for forecasting future price movements of cryptocurrencies. Two famous technical analysis Indicators are the golden cross and the death cross.
A golden cross is a useful momentum indicator, happening when a cryptocurrency's short-term price moving average moves above its long-term moving average. The opposite of a golden cross is a death cross, which indicates the point where the short-term price moving average moves below the long-term moving average. In the case of the golden cross and death cross, the short-term moving average is often a 50-day moving average, while the long-term moving average is a 200-day moving average.
Golden cross and death cross signals a price trend. For instance, a golden cross is seen as a strong indication that a cryptocurrency will continue to move up at price. On the other hand, the death cross is an indication that a cryptocurrency will continue to see its price decline.
A golden cross indicates when the long-term bull market is moving upward.
A golden cross indicates a long-term uptrendmarket moving forward. Golden cross refer the firm confirmation of a long-term trend by what happens in of a short-term moving average crossing over a main long-term moving average.
There are three levels to a golden cross.
A downtrend that in the long run finishes as selling is drained
A second stage where the more limited moving average crosses up through the more extended moving average
The proceeding uptrend, ideally leading to higher prices.
The death cross happens when the short term average downtrend and crosses the long-term average, precisely moving in the opposite direction of the golden cross.
In depend of on the time frame the trader is look to be able to just result. Some traders uses 15mins, 30mins, 2hrs and 4hrs chart while the swings trader look at higher time frame such as days, week, month. The golden cross and death cross pattern is more useful to traders when their signal is confirmed by other technical indicators. It is one of the most famous technical indicators to confirm a long-term bullish or bearish trend change is trading volume. The higher trading volume indicates more buyers or sellers are trooping into the idea of a major trend change.
The 50-day and 200-day moving averages are those most usually used by traders to recognize a death cross. One usual variation of the golden cross and death cross signal is a 20-day moving average up forward or downside cross of the 50-day moving average. Another variation replays the 100-day moving average instead of the 200-day moving average as the long-term average. These forms may work more reliable when there is a certainly wide detachment between the 50- and 200-day moving averages. Since the further away the 2 averages are from each other, the more the golden or death crossover may fall behind value action.
I will recommend that traders should use shorter time frames patterns, using the four-hour or hourly charts rather than daily charts to get good results.
Go to your trading chart and click on indicator
Change the length for first MA to 50 and the other MA to 200
Change the colour to identify the short term moving average and the long term moving average
What is Binance P2P and how to use it?
What is P2PTrading?
P2P trading is the process of buying and selling digital currency directly between users, without an agent or intermediary. When you buy or sell cryptocurrencies using a native exchange, you do not get to transact directly with the counterparty. Rather, you use charts and other market features to predict the best time to buy, sell, or hold your digital currency. The exchange arranged the transaction for the traders, and the market values decide your final price during the time of transaction.
P2P trading offers the trader of cryptocurrencies more control over who procure your asset and who you buy from, the pricing, and payment time. While P2P trading offers traders ultimate control over the process.
How does it work
Before you can use the P2P feature you have to verify your exchange account. Verification is needed the exchange platform wants to protect both buyer's and sellers' transactions and also reduce the risk of fraud. The exchange platform uses escrow to protect the digital currencies until the buyer and seller confirmed the transaction. For instance, if you are seller Ethereum for fiat money, Binance will escrow your Ethereum or whatever cryptocurrencies you want to sell. Once you send Ethereum or any cryptocurrency and confirmed the transaction. The exchange platform will instantly credit you and the buyer.
What are the things to keep in mind during P2P trade and describe its four advantages and disadvantages. (own words)
| Advantages of P2P Exchanges | Disadvantages of P2P Exchanges |
|---|---|
| 1)The exchange platform has an escrow service to secure buyers and sellers. When choosing to protect a transaction with escrow, assets are held by the exchange and only released when the terms of the transaction are met by the buyer and seller involved. | 1) The P2P can be performed almost instantly but the buyer or seller could delay the transaction for individuals reasons. |
| 2) One of the advantages of using a P2P cryptocurrency exchange is that it offers you access to digital currencies from different countries. You can buy and sell your asset with individuals across the globe in a few seconds. | 2) The P2P exchanges are very new have lower liquidity compare to the centralized exchanges method. |
| 3) While traditional digital currency exchanges have to do with a fixed fee for transactions or fixed percentage per trade, P2P permits traders to connect to buyers or sellers and carry out transactions with zero fees. | 3) Unpredictability is another downside. Cryptocurrency can easily be converted back to fiat currency, but there is no guarantee that you will regain the original price of whatever transaction you initiated with the P2P currency because of the velocity. |
| 4) P2P exchange offers many payment options on like the traditional method that is limited in payment options. | 4) The seller's asset can never be refunded if the seller releases the asset without confirming whether payment has been made. |
Golden cross and death cross is a very useful momentum indicator for trader to predict a continuing uptrend or downtrend and also know the right moment to buy or sell an asset. It is also importance to combine it with other technical indicators.
Binance P2P trading method is also a useful method that connect buyers and sellers from different location.
Thank you @yousafharoonkhan for the wonderful lecture.
Respected first thank you very much for taking interest in SteemitCryptoAcademy
Season 3 | intermediate course class week 5
in abov e image, you made circled wrong place, you should place it at the place of cross
so these all mistake , should be cover ,
thank you very much for taking interest in this class