What is Bitcoin? How does blockchain work? How to mine cryptocurrency? We are glad to help you answer these questions with our quick guides in Explained section.
rn”,”seo_description”:”What is Bitcoin? How does blockchain work? How to mine cryptocurrency? We are glad to help you answer these questions with our quick guides in Explained section.”},”words_count”: 889,”description”:”Golden crosses and death crosses are key signals that technical analysts use to determine whether an asset is trending upward or downward”,”author”:{“id”: 1418,”title”:”Marcel Deer”,”url”:”marcel-deer”,”twitter”:””,”google_plus”:””,”photo”:”https://s3.cointelegraph.com/storage/uploads/view/a427b150b57d0a9ad4054cf042cf01b8.jpg”,”gender”:”male”,”description”:”A qualified journalist with a background in PR and marketing, Marcel has been passionate about crypto since he first read the Cypherpunks Manifesto. As a strong believer in the power of DeFi, decentralization, and the digital economy, when he’s not writing, he’s researching the latest node projects and actively enjoying the crypto community on Twitter.”,”facebook”:””,”email”:””,”linkedin”:””,”created_at”:”2021-11-07 07: 02: 27″,”updated_at”:”2022-05-04 15: 55: 37″,”deleted_at”:null,”avatar”:”https://images.cointelegraph.com/images/150_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy9hNDI3YjE1MGI1N2QwYTlhZDQwNTRjZjA0MmNmMDFiOC5qcGc=.jpg”,”hash”:”aHR0cHM6Ly9jb2ludGVsZWdyYXBoLmNvbS9hdXRob3JzL21hcmNlbC1kZWVy”,”relativeUrl”:”https://cointelegraph.com/authors/marcel-deer”,”user_id”: 1418,”language_id”:1,”name”:”Marcel Deer”,”desc”:”A qualified journalist with a background in PR and marketing, Marcel has been passionate about crypto since he first read the Cypherpunks Manifesto. As a strong believer in the power of DeFi, decentralization, and the digital economy, when he’s not writing, he’s researching the latest node projects and actively enjoying the crypto community on Twitter.”,”seo_title”:””,”seo_description”:””,”enabled”:1,”show_in_authors”:0,”show_in_experts”:0},”category_id”: 65,”audio”:”https://s3.cointelegraph.com/audio/93513.c703d498-7488-462b-9bd4-4f1fc1dedb82.mp3″,”tags”:[{“name”:”Bitcoin”,”uri”:”/tags/bitcoin”,”super”:1,”page_title”:”Bitcoin News”},{“name”:”Cryptocurrencies”,”uri”:”/tags/cryptocurrencies”,”super”:0,”page_title”:”Cryptocurrencies News”},{“name”:”Investments”,”uri”:”/tags/investments”,”super”:0,”page_title”:”Investments News”},{“name”:”Trading”,”uri”:”/tags/trading”,”super”:0,”page_title”:”Trading News”}],”tag_title”:”Bitcoin”,”date”:”SEP 17, 2022″,”badge”:{“title”:”Explained”,”label”:”default”},”qty”:0,”stats_pixel”:””,”stats_pixel_url”:”https://zoa.cointelegraph.com/pixel?postId=93513®ionId=1″,”shares”: 32,”infographic”:false,”sponsored”:false,”explained”:true,”press_release”:false,”show_referral”:false,”social_description”:”Sometimes trading slang can sound intimidating for inexperienced investors, but if you are in crypto, you want to be familiar with them. Let’s start with the golden cross and the death cross.”,”social_translators”:{“clipboard_popup_label”:”Link copied”,”socialWechatFooterError”:”WeChat error”,”socialWechatFooterText”:”WeChat share”,”socialWechatHeaderText”:”WeChat share”},”social_shares”:{“post_id”: 93513,”post_url”:”https://cointelegraph.com/explained/golden-cross-vs-death-cross-explained”,”post_titles”:{“normal”:”Golden cross vs. death cross explained”,”twitter”:”Golden cross vs. death cross explained”},”post_text”:{“normal”:”Golden cross vs. death cross explained”,”twitter”:”Golden cross vs. death cross explained https://cointelegraph.com/explained/golden-cross-vs-death-cross-explained via @cointelegraph”},”accounts”:{“twitter”:”@cointelegraph”}},”socials”:{“facebook”:{“url”:”https://www.facebook.com/sharer/sharer.php?u=https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fgolden-cross-vs-death-cross-explained”,”count”:null,”short”:”fb”,”fa”:”facebook”},”twitter”:{“url”:”https://twitter.com/intent/tweet?text=Golden+cross+vs.+death+cross+explained https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fgolden-cross-vs-death-cross-explained via @cointelegraph”,”count”:null,”short”:”tw”,”fa”:”twitter”},”telegram”:{“url”:”https://telegram.me/share/url?url=https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fgolden-cross-vs-death-cross-explained &text=Golden+cross+vs.+death+cross+explained”,”count”:null,”short”:”tg”,”fa”:”paper-plane”},”whatsapp”:{“url”:”https://api.whatsapp.com/send?text=Golden+cross+vs.+death+cross+explained&href=https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fgolden-cross-vs-death-cross-explained”,”count”:null,”short”:”wu”,”fa”:”whatsapp”},”gplus”:{“url”:”https://plus.google.com/share?url=https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fgolden-cross-vs-death-cross-explained”,”count”:null,”short”:”gplus”,”fa”:”google-plus”},”reddit”:{“url”:”https://www.reddit.com/submit?url=https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fgolden-cross-vs-death-cross-explained&title=Golden+cross+vs.+death+cross+explained”,”count”:null,”short”:”reddit”,”fa”:”reddit-alien”},”linkedin”:{“url”:”https://www.linkedin.com/shareArticle?mini=true&url=https%3A%2F%2Fcointelegraph.com%2Fexplained%2Fgolden-cross-vs-death-cross-explained&title=Golden+cross+vs.+death+cross+explained”,”count”:null,”short”:”li”,”fa”:”linkedin”}},”hide_disclaimer”:false,”elink”:”https://cointelegraph.com”,”etitle”:”Cointelegraph”,”elogo_x2″:”https://images.cointelegraph.com/images/528_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy9hYjAzYTJhMmNlOWEyMWRjMWYwOTYxZDkxNzMxYzhiYS5wbmc=.png”,”elogo_x1″:”https://images.cointelegraph.com/images/260_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS9zdG9yYWdlL3VwbG9hZHMvdmlldy9hYjAzYTJhMmNlOWEyMWRjMWYwOTYxZDkxNzMxYzhiYS5wbmc=.png”,”elogo_svg”:false,”content”:[{“id”: 3692,”post_id”: 93513,”title”:”What is a moving average?”,”content”:”
The moving average is a stock indicator commonly used in technical analysis that helps create a constantly updated average price.
nn
A clear grasp of moving average (MA) is crucial in better understanding the golden cross and the death cross. Generally, MAs are calculated to determine the trend direction of an asset or to identify its support and resistance levels.
nn
The MA is a technical indicator that refers to the average price of a specific asset over a defined period. MAs indicate whether the asset is trending in a bullish (positive, upward) direction or moving in a bearish (negative, downward) direction.
nn
MAs provide useful signals when trading cryptocurrency charts in real time. They can also be adjusted to different periods, such as 10, 20, 50, 100 or 200-day periods. Such periods highlight market trends, making them easily identifiable.
nn
Traders also use different types of MAs. The first is the simple moving average (SMA), which takes an asset’s average price over a certain period divided by the total number of periods.
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Another is the weighted moving average, which, as the name indicates, assigns more weight to recent prices. This makes the value more reflective of recent changes in the market. An exponential moving average, on the other hand, while attributing more weight to recent prices, does not remain consistent with the rate of decrease between a specific price and the price before it.
nn
Moving averages, also called “lagging indicators,” are based on historical prices. Traders use MAs as signals to guide them in buying and selling assets, with the 50-day and 200-day periods being the most closely watched among crypto traders.
nnnnnn”,”created_at”:”2022-09-17 12: 41: 06″,”updated_at”:”2022-09-17 20: 11: 05″,”sort”:1,”translations”:{“id”: 3685,”explained_post_id”: 3692,”title_en”:”What is a moving average?”,”content_en”:”
The moving average is a stock indicator commonly used in technical analysis that helps create a constantly updated average price.
nn
A clear grasp of moving average (MA) is crucial in better understanding the golden cross and the death cross. Generally, MAs are calculated to determine the trend direction of an asset or to identify its support and resistance levels.
nn
The MA is a technical indicator that refers to the average price of a specific asset over a defined period. MAs indicate whether the asset is trending in a bullish (positive, upward) direction or moving in a bearish (negative, downward) direction.
nn
MAs provide useful signals when trading cryptocurrency charts in real time. They can also be adjusted to different periods, such as 10, 20, 50, 100 or 200-day periods. Such periods highlight market trends, making them easily identifiable.
nn
Traders also use different types of MAs. The first is the simple moving average (SMA), which takes an asset’s average price over a certain period divided by the total number of periods.
nn
nn
Another is the weighted moving average, which, as the name indicates, assigns more weight to recent prices. This makes the value more reflective of recent changes in the market. An exponential moving average, on the other hand, while attributing more weight to recent prices, does not remain consistent with the rate of decrease between a specific price and the price before it.
nn
Moving averages, also called “lagging indicators,” are based on historical prices. Traders use MAs as signals to guide them in buying and selling assets, with the 50-day and 200-day periods being the most closely watched among crypto traders.
nnnnnn”,”title_es”:”¿Qué es una media móvil?”,”content_es”:”
La media móvil es un indicador bursátil comúnmente utilizado en el análisis técnico que ayuda a crear un precio medio constantemente actualizado.
nn
Una clara comprensión de la media móvil (MA) es crucial para entender mejor el cruce dorado (golden cross) y el cruce de la muerte (death cross). Generalmente, las MA se calculan para determinar la dirección de la tendencia de un activo o para identificar sus niveles de soporte y resistencia.
nn
La MA es un indicador técnico que se refiere al precio promedio de un activo específico durante un período definido. Las MA indican si el activo tiene una tendencia alcista (positiva, ascendente) o si se mueve en una dirección bajista (negativa, descendente).
nn
Las MA proporcionan señales útiles cuando se operan gráficos de criptomonedas en tiempo real. También pueden ajustarse a diferentes períodos, como los de 10, 20, 50, 100 o 200 días. Estos periodos destacan las tendencias del mercado, haciéndolas fácilmente identificables.
nn
Los traders también utilizan diferentes tipos de MA. La primera es la media móvil simple (SMA), que toma el precio medio de un activo durante un período determinado dividido por el número total de períodos.
nn
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Otra es la media móvil ponderada, que, como su nombre indica, asigna más peso a los precios recientes. Esto hace que el valor refleje mejor los cambios recientes en el mercado. Una media móvil exponencial, por el contrario, aunque atribuye más peso a los precios recientes, no se ajusta a la tasa de disminución entre un precio específico y el precio anterior.
nn
Las medias móviles, también llamadas “indicadores de retraso”, se basan en los precios históricos. Los traders utilizan las MA como señales para guiarse en la compra y venta de activos, siendo los periodos de 50 días y 200 días los más vigilados entre los traders de criptomonedas.
nnnnn”,”title_cn”:””,”content_cn”:”nnnn”,”title_de”:””,”content_de”:”nnnn”,”title_fr”:””,”content_fr”:”nnnn”,”title_it”:””,”content_it”:”nnnn”,”title_ar”:””,”content_ar”:”nnnn”,”title_br”:””,”content_br”:”nnnn”,”title_jp”:””,”content_jp”:”nnnn”,”created_at”:”2022-09-17 12: 41: 06″,”updated_at”:”2022-09-17 20: 11: 05″,”title_kr”:””,”content_kr”:”nnnn”,”title_tr”:””,”content_tr”:”nnnn”}},{“id”: 3693,”post_id”: 93513,”title”:”What is a golden cross?”,”content”:”
A so-called “golden cross” occurs when a short-term MA and a major, long-term MA cross over toward the upside. A golden cross suggests a price rise and an upward turn in the market.
nn
The short-term MA moves upward much faster than the long-term MA until market conditions push them to cross. In terms of simple moving averages, golden crosses occur when the 50-day SMA crosses above the 200-day SMA, indicating a definitive uptrend.
nn
nn
A golden cross formation typically has three stages. When selling is depleted, it usually marks the end of a downtrend and thus, the beginning of a golden cross. The next stage is when the short-term MA crosses through the long-term MA. This is quickly followed by the last stage, marked by a continuing uptrend, usually leading to higher prices.
nn
No two golden crosses are identical, but these three stages are usually the distinctive events that mark the occurrence of a golden cross. Let’s look at each stage in more detail.
nn
During the first stage, buyers are taking control of a downtrend. A short-term weakness in the 50-day moving average signals the beginning of a golden cross. This is because the resulting strength typically arises from buyers beginning to take control just as short-term sellers are drying up.
nn
A leveling out occurs on the chart, with buyers driving prices higher as they try to gain control. The resulting momentum gradually pushes the 50-day MA through the 200-MA, at which point the two periods cross. When the 50-day MA surpasses the 200-day MA, traders typically go on high alert to determine whether an uptrend is occurring or if it’s just a false alarm.
nn
The final stage happens as the 50-day MA continues to push up, indicating its momentum. This also typically leads to overbuying, albeit only in short bursts.
nnnnnn”,”created_at”:”2022-09-17 12: 43: 00″,”updated_at”:”2022-09-17 20: 11: 05″,”sort”:2,”translations”:{“id”: 3686,”explained_post_id”: 3693,”title_en”:”What is a golden cross?”,”content_en”:”
A so-called “golden cross” occurs when a short-term MA and a major, long-term MA cross over toward the upside. A golden cross suggests a price rise and an upward turn in the market.
nn
The short-term MA moves upward much faster than the long-term MA until market conditions push them to cross. In terms of simple moving averages, golden crosses occur when the 50-day SMA crosses above the 200-day SMA, indicating a definitive uptrend.
nn
nn
A golden cross formation typically has three stages. When selling is depleted, it usually marks the end of a downtrend and thus, the beginning of a golden cross. The next stage is when the short-term MA crosses through the long-term MA. This is quickly followed by the last stage, marked by a continuing uptrend, usually leading to higher prices.
nn
No two golden crosses are identical, but these three stages are usually the distinctive events that mark the occurrence of a golden cross. Let’s look at each stage in more detail.
nn
During the first stage, buyers are taking control of a downtrend. A short-term weakness in the 50-day moving average signals the beginning of a golden cross. This is because the resulting strength typically arises from buyers beginning to take control just as short-term sellers are drying up.
nn
A leveling out occurs on the chart, with buyers driving prices higher as they try to gain control. The resulting momentum gradually pushes the 50-day MA through the 200-MA, at which point the two periods cross. When the 50-day MA surpasses the 200-day MA, traders typically go on high alert to determine whether an uptrend is occurring or if it’s just a false alarm.
nn
The final stage happens as the 50-day MA continues to push up, indicating its momentum. This also typically leads to overbuying, albeit only in short bursts.
nnnnnn”,”title_es”:”¿Qué es un cruce dorado?”,”content_es”:”
El llamado “cruce dorado” se produce cuando una MA a corto plazo y una MA mayor a largo plazo se cruzan al alza. Un cruce dorado sugiere una subida de precios y un giro al alza en el mercado.
nn
La MA de corto plazo se mueve hacia arriba mucho más rápido que la MA de largo plazo hasta que las condiciones del mercado las empujan a cruzarse. En términos de medias móviles simples, los cruces dorados se producen cuando la SMA de 50 días se cruza por encima de la SMA de 200 días, lo que indica una tendencia alcista definitiva.
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Una formación de cruce dorado suele tener tres etapas. Cuando la venta se agota, suele marcar el final de una tendencia bajista y, por tanto, el comienzo de un cruce dorado. La siguiente etapa es cuando la MA de corto plazo cruza la MA de largo plazo. A esto le sigue rápidamente la última etapa, marcada por la continuación de la tendencia alcista, que suele conducir a precios más altos.
nn
No hay dos cruces dorados idénticos, pero estas tres etapas suelen ser los acontecimientos distintivos que marcan la aparición de un cruce dorado. Veamos cada etapa con más detalle.
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Durante la primera etapa, los compradores toman el control de una tendencia bajista. Una debilidad a corto plazo en la media móvil de 50 días señala el comienzo de un cruce dorado. Esto se debe a que la fuerza resultante suele surgir de los compradores que comienzan a tomar el control justo cuando los vendedores a corto plazo se están agotando.
nn
Se produce una nivelación en el gráfico, con los compradores impulsando los precios al alza mientras intentan obtener el control. El impulso resultante empuja gradualmente la MA de 50 días a través de la MA de 200, momento en el que los dos períodos se cruzan. Cuando la MA de 50 días supera a la MA de 200 días, los traders suelen ponerse en alerta máxima para determinar si se está produciendo una tendencia alcista o si se trata de una falsa alarma.
nn
La última etapa se produce cuando la MA de 50 días sigue empujando hacia arriba, lo que indica su impulso. Esto también suele llevar a la sobrecompra, aunque solo en ráfagas cortas.
nnnn”,”title_cn”:””,”content_cn”:”nnnn”,”title_de”:””,”content_de”:”nnnn”,”title_fr”:””,”content_fr”:”nnnn”,”title_it”:””,”content_it”:”nnnn”,”title_ar”:””,”content_ar”:”nnnn”,”title_br”:””,”content_br”:”nnnn”,”title_jp”:””,”content_jp”:”nnnn”,”created_at”:”2022-09-17 12: 43: 00″,”updated_at”:”2022-09-17 20: 11: 05″,”title_kr”:””,”content_kr”:”nnnn”,”title_tr”:””,”content_tr”:”nnnn”}},{“id”: 3694,”post_id”: 93513,”title”:”What is a death cross?”,”content”:”
Compared to the golden cross, a death cross involves a downside MA crossover. This marks a definitive market downturn and typically occurs when the short-term MA trends down, crossing the long-term MA.
nn
Simply put, it’s the exact opposite of the golden cross. A death cross is usually read as a bearish signal. The 50-day MA typically crosses below the 200-day MA, signaling a downtrend.
nn
Three phases mark a death cross. The first occurs during an uptrend when the short-term MA is still above the long-term MA. The second phase is characterized by a reversal, during which the short-term MA crosses below the long-term MA. This is followed by the start of a downtrend as the short-term MA continues to move downward, staying below the long-term MA.
nn
nn
Like golden crosses, no two death crosses are alike, but specific indicators signal their occurrence. Here’s a look at each stage of a death cross in detail. The first stage of a death cross is typically marked by an asset being in an uptrend. This is followed by a weakening 50-day MA, the first sign that bearishness may be on the horizon. As prices begin to fall after they peak, the short-term MA diverges from the long-term MA.
nn
The second stage sees the 50-day MA crossing below the 200-day MA. This is a key point, as it signals that the asset may be entering a downtrend. The divergence between the two MAs becomes more pronounced as prices continue to fall. The death cross begins to form much more clearly during this stage.
nn
The final stage is marked by the 50-day MA continuing to trend downward, staying below the 200-day MA. This signals that a downtrend is indeed underway. The death cross typically leads to further selling pressure as traders liquidate their positions in anticipation of further price declines.
nn
If, however, the downtrend is not sustained, it could mean a short-lived momentum and prices rebounding quickly, in which case, the death cross is considered to be a false signal.
nnnnnn”,”created_at”:”2022-09-17 12: 44: 54″,”updated_at”:”2022-09-17 20: 11: 05″,”sort”:3,”translations”:{“id”: 3687,”explained_post_id”: 3694,”title_en”:”What is a death cross?”,”content_en”:”
Compared to the golden cross, a death cross involves a downside MA crossover. This marks a definitive market downturn and typically occurs when the short-term MA trends down, crossing the long-term MA.
nn
Simply put, it’s the exact opposite of the golden cross. A death cross is usually read as a bearish signal. The 50-day MA typically crosses below the 200-day MA, signaling a downtrend.
nn
Three phases mark a death cross. The first occurs during an uptrend when the short-term MA is still above the long-term MA. The second phase is characterized by a reversal, during which the short-term MA crosses below the long-term MA. This is followed by the start of a downtrend as the short-term MA continues to move downward, staying below the long-term MA.
nn
nn
Like golden crosses, no two death crosses are alike, but specific indicators signal their occurrence. Here’s a look at each stage of a death cross in detail. The first stage of a death cross is typically marked by an asset being in an uptrend. This is followed by a weakening 50-day MA, the first sign that bearishness may be on the horizon. As prices begin to fall after they peak, the short-term MA diverges from the long-term MA.
nn
The second stage sees the 50-day MA crossing below the 200-day MA. This is a key point, as it signals that the asset may be entering a downtrend. The divergence between the two MAs becomes more pronounced as prices continue to fall. The death cross begins to form much more clearly during this stage.
nn
The final stage is marked by the 50-day MA continuing to trend downward, staying below the 200-day MA. This signals that a downtrend is indeed underway. The death cross typically leads to further selling pressure as traders liquidate their positions in anticipation of further price declines.
nn
If, however, the downtrend is not sustained, it could mean a short-lived momentum and prices rebounding quickly, in which case, the death cross is considered to be a false signal.
nnnnnn”,”title_es”:”¿Qué es un cruce de la muerte?”,”content_es”:”
En comparación con el cruce dorado, un cruce de la muerte implica un cruce de la MA a la baja. Esto marca un descenso definitivo del mercado y suele ocurrir cuando la MA a corto plazo tiende a la baja, cruzando la MA a largo plazo.
nn
En pocas palabras, es exactamente lo contrario del cruce dorado. Un cruce de la muerte suele leerse como una señal bajista. La MA de 50 días suele cruzar por debajo de la MA de 200 días, señalando una tendencia bajista.
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Hay tres fases que marcan un cruce de la muerte. La primera ocurre durante una tendencia alcista cuando la MA de corto plazo está todavía por encima de la MA de largo plazo. La segunda fase se caracteriza por una inversión, durante la cual la MA de corto plazo cruza por debajo de la MA de largo plazo. A continuación, se inicia una tendencia bajista, ya que la MA a corto plazo continúa moviéndose hacia abajo, manteniéndose por debajo de la MA a largo plazo.
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Al igual que los cruces dorados, no hay dos cruces de la muerte iguales, pero hay indicadores específicos que señalan su aparición. A continuación, veremos en detalle cada una de las etapas de un cruce de la muerte. La primera etapa de un cruce de la muerte suele estar marcada por un activo que se encuentra en una tendencia alcista. A esto le sigue un debilitamiento de la MA de 50 días, la primera señal de que los bajistas pueden estar en el horizonte. A medida que los precios comienzan a caer después de alcanzar su máximo, la MA de corto plazo diverge de la MA de largo plazo.
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En la segunda etapa, la MA de 50 días cruza por debajo de la MA de 200 días. Este es un punto clave, ya que indica que el activo puede estar entrando en una tendencia bajista. La divergencia entre las dos MA se acentúa a medida que los precios siguen cayendo. El cruce de la muerte comienza a formarse de forma mucho más clara durante esta etapa.
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La etapa final está marcada por la MA de 50 días que continúa la tendencia a la baja, manteniéndose por debajo de la MA de 200 días. Esto indica que la tendencia bajista está en marcha. El cruce de la muerte normalmente conduce a una mayor presión de venta, ya que los traders liquidan sus posiciones en previsión de nuevas caídas de precios.
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Sin embargo, si la tendencia bajista no se mantiene, podría significar un impulso de corta duración y que los precios repuntaran rápidamente, en cuyo caso, el cruce de la muerte se considera una señal falsa.
nnn”,”title_cn”:””,”content_cn”:”nnnn”,”title_de”:””,”content_de”:”nnnn”,”title_fr”:””,”content_fr”:”nnnn”,”title_it”:””,”content_it”:”nnnn”,”title_ar”:””,”content_ar”:”nnnn”,”title_br”:””,”content_br”:”nnnn”,”title_jp”:””,”content_jp”:”nnnn”,”created_at”:”2022-09-17 12: 44: 54″,”updated_at”:”2022-09-17 20: 11: 05″,”title_kr”:””,”content_kr”:”nnnn”,”title_tr”:””,”content_tr”:”nnnn”}},{“id”: 3695,”post_id”: 93513,”title”:”What’s the difference between a golden cross and a death cross?”,”content”:”
The key difference between a golden cross and a death cross is that the former signals an uptrend while the latter indicates a downtrend.
nn
As mentioned, the two are essentially opposites, in terms of how they appear on the chart and what they signal. Since MAs are lagging indicators, both crosses only serve to confirm the occurrence of a trend reversal, not predict it. As such, they should be used in conjunction with other technical indicators to better understand market conditions.
nn
The golden cross and the death cross are usually confirmed by high trading volume. Other technical indicators that analysts may look at are the moving average convergence divergence and the relative strength index.
nn
Death crosses typically signal the beginning of a long-term bear market, not just in crypto but overall stock markets. The death cross heralded the arrival of major economic crises in the past, such as the Black Monday stock market crash of 1929 and the 2008 financial crisis.
nn
That said, death crosses may also indicate false signals and are not 100% accurate. For instance, there have been instances of markets recovering after a death cross.
nn
On the other hand, golden crosses signal the arrival of a long-term bullish market. But, despite its apparent predictive ability in forecasting previous huge bull runs, golden crosses may also produce false signals.
nn
nnnnnn”,”created_at”:”2022-09-17 12: 46: 16″,”updated_at”:”2022-09-17 20: 11: 05″,”sort”:4,”translations”:{“id”: 3688,”explained_post_id”: 3695,”title_en”:”What’s the difference between a golden cross and a death cross?”,”content_en”:”
The key difference between a golden cross and a death cross is that the former signals an uptrend while the latter indicates a downtrend.
nn
As mentioned, the two are essentially opposites, in terms of how they appear on the chart and what they signal. Since MAs are lagging indicators, both crosses only serve to confirm the occurrence of a trend reversal, not predict it. As such, they should be used in conjunction with other technical indicators to better understand market conditions.
nn
The golden cross and the death cross are usually confirmed by high trading volume. Other technical indicators that analysts may look at are the moving average convergence divergence and the relative strength index.
nn
Death crosses typically signal the beginning of a long-term bear market, not just in crypto but overall stock markets. The death cross heralded the arrival of major economic crises in the past, such as the Black Monday stock market crash of 1929 and the 2008 financial crisis.
nn
That said, death crosses may also indicate false signals and are not 100% accurate. For instance, there have been instances of markets recovering after a death cross.
nn
On the other hand, golden crosses signal the arrival of a long-term bullish market. But, despite its apparent predictive ability in forecasting previous huge bull runs, golden crosses may also produce false signals.
nn
nnnnnn”,”title_es”:”¿Cuál es la diferencia entre un cruce dorado y un cruce de la muerte?”,”content_es”:”
La diferencia clave entre un cruce dorado y un cruce de la muerte es que el primero señala una tendencia alcista mientras que el segundo indica una tendencia bajista.
nn
Como se ha mencionado, los dos son esencialmente opuestos, en términos de cómo aparecen en el gráfico y lo que señalan. Dado que las MA son indicadores rezagados, ambos cruces solo sirven para confirmar la ocurrencia de un cambio de tendencia, no para predecirla. Por ello, deben utilizarse junto con otros indicadores técnicos para comprender mejor las condiciones del mercado.
nn
El cruce dorado y el cruce de la muerte suelen ser confirmados por un alto volumen de negociación. Otros indicadores técnicos que los analistas pueden observar son la divergencia de convergencia de medias móviles y el índice de fuerza relativa.
nn
Los cruces de la muerte suelen señalar el comienzo de un mercado bajista a largo plazo, no solo en las criptomonedas sino en los mercados de valores en general. Los cruces de la muerte anunciaron la llegada de grandes crisis económicas en el pasado, como el desplome bursátil del Lunes Negro de 1929 y la crisis financiera de 2008.
nn
Dicho esto, los cruces de la muerte también pueden indicar señales falsas y no son 100% precisas. Por ejemplo, ha habido casos en los que los mercados se han recuperado después de un cruce de la muerte.
nn
Por otro lado, los cruces dorados señalan la llegada de un mercado alcista a largo plazo. Pero, a pesar de su aparente capacidad de predicción al pronosticar grandes rachas alcistas anteriores, los cruces dorados también pueden producir señales falsas.
nn
nnn”,”title_cn”:””,”content_cn”:”nnnn”,”title_de”:””,”content_de”:”nnnn”,”title_fr”:””,”content_fr”:”nnnn”,”title_it”:””,”content_it”:”nnnn”,”title_ar”:””,”content_ar”:”nnnn”,”title_br”:””,”content_br”:”nnnn”,”title_jp”:””,”content_jp”:”nnnn”,”created_at”:”2022-09-17 12: 46: 16″,”updated_at”:”2022-09-17 20: 11: 05″,”title_kr”:””,”content_kr”:”nnnn”,”title_tr”:””,”content_tr”:”nnnn”}},{“id”: 3696,”post_id”: 93513,”title”:”How can traders use the golden and death crosses in their trading strategies?”,”content”:”
Traders typically buy during a golden cross and sell during a death cross.
nn
Different traders will have different approaches to crossover signals. Some traders might wait for a confirmed golden or death cross before entering or exiting a trade. Others might use the crosses as confirmation signals in conjunction with other technical indicators.
nn
In general, however, the golden and death crosses can be used as trend-reversal signals. If a trader sees a golden cross forming, they might buy an asset in anticipation of prices rising. Similarly, if a trader sees a death cross forming, they might sell an asset in anticipation of prices falling.
nn
Of course, it is always important to use caution when trading crossover signals, as blindly following them might lead to losses. As mentioned, false signals occur and it’s important to confirm any crossover signal with other technical indicators before taking a position.
nn
Seasoned traders also know to look at the bigger picture and consider multiple readings. For instance, a golden cross might happen on an hourly time frame, but zooming out to look at the daily or weekly time frame might show that a death cross is actually in play.
nn
Trading volume is also something to look out for when trading crossover signals, as volume spikes may very well confirm or deny the validity of a signal.
nn
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nnnnnn”,”created_at”:”2022-09-17 12: 47: 15″,”updated_at”:”2022-09-17 20: 11: 03″,”sort”:5,”translations”:{“id”: 3689,”explained_post_id”: 3696,”title_en”:”How can traders use the golden and death crosses in their trading strategies?”,”content_en”:”
Traders typically buy during a golden cross and sell during a death cross.
nn
Different traders will have different approaches to crossover signals. Some traders might wait for a confirmed golden or death cross before entering or exiting a trade. Others might use the crosses as confirmation signals in conjunction with other technical indicators.
nn
In general, however, the golden and death crosses can be used as trend-reversal signals. If a trader sees a golden cross forming, they might buy an asset in anticipation of prices rising. Similarly, if a trader sees a death cross forming, they might sell an asset in anticipation of prices falling.
nn
Of course, it is always important to use caution when trading crossover signals, as blindly following them might lead to losses. As mentioned, false signals occur and it’s important to confirm any crossover signal with other technical indicators before taking a position.
nn
Seasoned traders also know to look at the bigger picture and consider multiple readings. For instance, a golden cross might happen on an hourly time frame, but zooming out to look at the daily or weekly time frame might show that a death cross is actually in play.
nn
Trading volume is also something to look out for when trading crossover signals, as volume spikes may very well confirm or deny the validity of a signal.
nn
Purchase a licence for this article. Powered by SharpShark.
nnnnnn”,”title_es”:”¿Cómo pueden los traders utilizar los cruces dorados y cruces de la muerte en sus estrategias de trading?”,”content_es”:”
Los traders suelen comprar durante un cruce dorado y vender durante un cruce de la muerte.
nn
Diferentes traders tendrán diferentes enfoques para las señales de cruces. Algunos traders pueden esperar a que se confirme un cruce dorado o de muerte antes de entrar o salir de una operación. Otros pueden utilizar los cruces como señales de confirmación junto con otros indicadores técnicos.
nn
En general, sin embargo, los cruces dorados y de muerte pueden utilizarse como señales de inversión de tendencia. Si un trader ve que se forma un cruce dorado, podría comprar un activo en previsión de que los precios suban. Del mismo modo, si un trader ve la formación de un cruce de muerte, podría vender un activo en previsión de la caída de los precios.
nn
Por supuesto, siempre es importante tener precaución al operar con señales de cruces, ya que seguirlas a ciegas podría provocar pérdidas. Como se ha mencionado, se producen señales falsas y es importante confirmar cualquier señal de cruce con otros indicadores técnicos antes de tomar una posición.
nn
Los traders experimentados también saben que deben mirar el panorama general y considerar múltiples lecturas. Por ejemplo, un cruce dorado puede producirse en un marco de tiempo horario, pero si se aleja para mirar el marco de tiempo diario o semanal puede mostrar que en realidad está en juego un cruce de muerte.
nn
El volumen de las operaciones también es algo a lo que hay que prestar atención cuando se negocian señales de cruces, ya que los picos de volumen pueden muy bien confirmar o negar la validez de una señal.
nn
Compre una licencia para este artículo. Desarrollado por SharpShark.
nnn”,”title_cn”:””,”content_cn”:”nnnn”,”title_de”:””,”content_de”:”nnnn”,”title_fr”:””,”content_fr”:”nnnn”,”title_it”:””,”content_it”:”nnnn”,”title_ar”:””,”content_ar”:”nnnn”,”title_br”:””,”content_br”:”nnnn”,”title_jp”:””,”content_jp”:”nnnn”,”created_at”:”2022-09-17 12: 47: 15″,”updated_at”:”2022-09-17 20: 11: 03″,”title_kr”:””,”content_kr”:”nnnn”,”title_tr”:””,”content_tr”:”nnnn”}}],”is_partner_material”:false,”commentsSection”:{“schemaEntityUrl”:”//cointelegraph.com/explained/golden-cross-vs-death-cross-explained”,”list”:[],”amount”:0,”i18n”:{“addComment”:”Add a comment…”,”amountOnePostfix”:”Comment”,”amountPostfix”:”Comments”,”cancel”:”Cancel”,”delete”:”Delete”,”edit”:”Edit”,”errorBig”:”Comment text cannot be longer than 2000 characters”,”errorDuplicate”:”Duplicate comment”,”errorSmall”:”Comment text must be at least 2 characters long”,”hideButton”:”Hide comments”,”noComments”:” “,”commentOnModeration”:”Comment on 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The moving average is a stock indicator commonly used in technical analysis that helps create a constantly updated average price.
A clear grasp of moving average (MA) is crucial in better understanding the golden cross and the death cross. Generally, MAs are calculated to determine the trend direction of an asset or to identify its support and resistance levels.
The MA is a technical indicator that refers to the average price of a specific asset over a defined period. MAs indicate whether the asset is trending in a bullish (positive, upward) direction or moving in a bearish (negative, downward) direction.
MAs provide useful signals when trading cryptocurrency charts in real time. They can also be adjusted to different periods, such as 10, 20, 50, 100 or 200-day periods. Such periods highlight market trends, making them easily identifiable.
Traders also use different types of MAs. The first is the simple moving average (SMA), which takes an asset’s average price over a certain period divided by the total number of periods.
Another is the weighted moving average, which, as the name indicates, assigns more weight to recent prices. This makes the value more reflective of recent changes in the market. An exponential moving average, on the other hand, while attributing more weight to recent prices, does not remain consistent with the rate of decrease between a specific price and the price before it.
Moving averages, also called “lagging indicators,” are based on historical prices. Traders use MAs as signals to guide them in buying and selling assets, with the 50-day and 200-day periods being the most closely watched among crypto traders.
A so-called “golden cross” occurs when a short-term MA and a major, long-term MA cross over toward the upside. A golden cross suggests a price rise and an upward turn in the market.
The short-term MA moves upward much faster than the long-term MA until market conditions push them to cross. In terms of simple moving averages, golden crosses occur when the 50-day SMA crosses above the 200-day SMA, indicating a definitive uptrend.
A golden cross formation typically has three stages. When selling is depleted, it usually marks the end of a downtrend and thus, the beginning of a golden cross. The next stage is when the short-term MA crosses through the long-term MA. This is quickly followed by the last stage, marked by a continuing uptrend, usually leading to higher prices.
No two golden crosses are identical, but these three stages are usually the distinctive events that mark the occurrence of a golden cross. Let’s look at each stage in more detail.
During the first stage, buyers are taking control of a downtrend. A short-term weakness in the 50-day moving average signals the beginning of a golden cross. This is because the resulting strength typically arises from buyers beginning to take control just as short-term sellers are drying up.
A leveling out occurs on the chart, with buyers driving prices higher as they try to gain control. The resulting momentum gradually pushes the 50-day MA through the 200-MA, at which point the two periods cross. When the 50-day MA surpasses the 200-day MA, traders typically go on high alert to determine whether an uptrend is occurring or if it’s just a false alarm.
The final stage happens as the 50-day MA continues to push up, indicating its momentum. This also typically leads to overbuying, albeit only in short bursts.
Compared to the golden cross, a death cross involves a downside MA crossover. This marks a definitive market downturn and typically occurs when the short-term MA trends down, crossing the long-term MA.
Simply put, it’s the exact opposite of the golden cross. A death cross is usually read as a bearish signal. The 50-day MA typically crosses below the 200-day MA, signaling a downtrend.
Three phases mark a death cross. The first occurs during an uptrend when the short-term MA is still above the long-term MA. The second phase is characterized by a reversal, during which the short-term MA crosses below the long-term MA. This is followed by the start of a downtrend as the short-term MA continues to move downward, staying below the long-term MA.
Like golden crosses, no two death crosses are alike, but specific indicators signal their occurrence. Here’s a look at each stage of a death cross in detail. The first stage of a death cross is typically marked by an asset being in an uptrend. This is followed by a weakening 50-day MA, the first sign that bearishness may be on the horizon. As prices begin to fall after they peak, the short-term MA diverges from the long-term MA.
The second stage sees the 50-day MA crossing below the 200-day MA. This is a key point, as it signals that the asset may be entering a downtrend. The divergence between the two MAs becomes more pronounced as prices continue to fall. The death cross begins to form much more clearly during this stage.
The final stage is marked by the 50-day MA continuing to trend downward, staying below the 200-day MA. This signals that a downtrend is indeed underway. The death cross typically leads to further selling pressure as traders liquidate their positions in anticipation of further price declines.
If, however, the downtrend is not sustained, it could mean a short-lived momentum and prices rebounding quickly, in which case, the death cross is considered to be a false signal.
The key difference between a golden cross and a death cross is that the former signals an uptrend while the latter indicates a downtrend.
As mentioned, the two are essentially opposites, in terms of how they appear on the chart and what they signal. Since MAs are lagging indicators, both crosses only serve to confirm the occurrence of a trend reversal, not predict it. As such, they should be used in conjunction with other technical indicators to better understand market conditions.
The golden cross and the death cross are usually confirmed by high trading volume. Other technical indicators that analysts may look at are the moving average convergence divergence and the relative strength index.
Death crosses typically signal the beginning of a long-term bear market, not just in crypto but overall stock markets. The death cross heralded the arrival of major economic crises in the past, such as the Black Monday stock market crash of 1929 and the 2008 financial crisis.
That said, death crosses may also indicate false signals and are not 100% accurate. For instance, there have been instances of markets recovering after a death cross.
On the other hand, golden crosses signal the arrival of a long-term bullish market. But, despite its apparent predictive ability in forecasting previous huge bull runs, golden crosses may also produce false signals.
Traders typically buy during a golden cross and sell during a death cross.
Different traders will have different approaches to crossover signals. Some traders might wait for a confirmed golden or death cross before entering or exiting a trade. Others might use the crosses as confirmation signals in conjunction with other technical indicators.
In general, however, the golden and death crosses can be used as trend-reversal signals. If a trader sees a golden cross forming, they might buy an asset in anticipation of prices rising. Similarly, if a trader sees a death cross forming, they might sell an asset in anticipation of prices falling.
Of course, it is always important to use caution when trading crossover signals, as blindly following them might lead to losses. As mentioned, false signals occur and it’s important to confirm any crossover signal with other technical indicators before taking a position.
Seasoned traders also know to look at the bigger picture and consider multiple readings. For instance, a golden cross might happen on an hourly time frame, but zooming out to look at the daily or weekly time frame might show that a death cross is actually in play.
Trading volume is also something to look out for when trading crossover signals, as volume spikes may very well confirm or deny the validity of a signal.
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Source: Cointelegraph
