DEATH CROSS SIGNAL....IS IT MEANINGFUL OR NOT ?

By bitgold555 | A.Saleem | 23 Nov 2019


Previous  market trends predict the future behaviour for any crypto-market.Death Cross is an INDICATOR and is generally considered as Bearish Signal.

 

Many of us know well ;what is death cross signal but still there are ones who don't understand;what actually it is ? 

 

We are not going into heavy stuff and TA,let's define simply what is a Death Cross;

 

"A death cross signal occurs when 50 SMA moves below the 200 SMA(then a Bearish Signal is created)"

 

Every death-cross signal is not the same

 

At this stage here arise 02 questions or scenarios;

 

1)  Is this a potential or meaningful death cross signal

2)  No-meaningful indicator

 

What's a potential or meaningful death cross signal ?

 

"When both moving averages short term 50 simple moving average and long term 200 moving average are declining"

 

When death cross signal is not considerable or meaningful ?

 

Here we see two charting situations when death cross has no value(not-meaningful);

 

1) When 50 SMA is declining while 200 SMA is not decling rather it moves in opposite upward direction.

 

2) When 50 SMA is declining while 200 SMA is not decling rather it moves in somewhat straight direction.

 

Last but not the least,death cross signal(only when it is potentially meaningful) indicates that;

 

★ a downtrend or bearish scenario has started.

★ here's market of that specific asset provide a buying opportunity.

 

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bitgold555
bitgold555

...crypto trader & enthusiast


A.Saleem
A.Saleem

"You become financially free when your passive income exceeds your expenses." ~ T. Harv Eker

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