Blockchain and Cryptocurrency Beginner - How Many Days Moving Average is Taken to See Death Cross and Golden Cross in Market for Better Result?

Death Cross

50 days moving average and 200 days moving average are the two common periods that is taken to see the death cross for better result. The death cross pattern appears when the shorter-term MA makes a cross and goes below the longer-term MA. In other words, the death cross forms when the 50 days moving average crosses below the 200 days moving average on the chart. 50 days is the shorter term and 200 days is the longer term.

The reason is that 50 days moving average shows the average closing prices in the past 50 days and is more sensitive to recent price movements. The 200-period moving average, on the other hand, shows the average closing prices in the past 200 days and is less sensitive to recent price movements.

Golden Cross

For the golden cross, the days are also similar to that of the death cross, however, it is the opposite of the death cross as the golden cross is a bullish signal. The 50 days moving average and 200 days moving average are also taken to see the golden cross for better results. This is because the golden cross pattern forms when the shorter-term moving average crosses above the longer-term moving average. In other words, the golden cross forms when the 50 days moving average crosses higher than the 200 days moving average on the chart. 50 days is the shorter term and 200 days is the longer term.

The reason is that 50 days moving average shows the average closing prices in the past 50 days and is more sensitive to recent price movements. The 200-period moving average, on the other hand, shows the average closing prices in the past 200 days and is less sensitive to recent price movements. This shorter-term moving average crossing above the longer-term moving average is effective in signalling that the market could be heading to a potential uptrend.