What is The Death Cross in Trading?
Generally, a death cross has three stages which we explained them in below.
When an uptrend finished, and price reached to previous or new highs, there would be a big gap between the faster moving average (50 MA) and the slower moving average (200 MA).
Usually, little later candlesticks get red and price starts to fall, and if the price continues to go down, the 50 MA will cross below the 200 MA to fill the gap between them.
Then, the downtrend will begin and 50 MA or 200 MA will act as a resistance for the price and will force it to go even lower.
Finally, the downtrend will finish when the golden cross happened.
The golden cross is opposite of the death cross and it occurs when the short-term moving average (50 MA) crosses above the long-term moving average (200 MA).
Generally, a death cross has three stages which we explained them in below.
When an uptrend finished, and price reached to previous or new highs, there would be a big gap between the faster moving average (50 MA) and the slower moving average (200 MA).
Usually, little later candlesticks get red and price starts to fall, and if the price continues to go down, the 50 MA will cross below the 200 MA to fill the gap between them.
Then, the downtrend will begin and 50 MA or 200 MA will act as a resistance for the price and will force it to go even lower.
Finally, the downtrend will finish when the golden cross happened.
The golden cross is opposite of the death cross and it occurs when the short-term moving average (50 MA) crosses above the long-term moving average (200 MA).