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Golden crossover


John Aaby

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Hi John, thanks for coming here.

You must have seen that Bitcoin has created a golden crossover on the daily chart. The media and analysts eagerly anticipated the crossover to take place, which is considered as a bullish development for Bitcoin prices.

This indicator takes place when the 50 daily moving average (DMA) gets above the 200 daily moving average. This is a sign that the market is turning towards being more bullish. 

The opposite scenario that creates a golden crossover is the “death crossover”, which takes place when the 50-DMA falls below the 200-DMA. 


 

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Golden crossover is an bullish indication, it uses a short-term moving average and and a long-term moving average.

It occurs when a short-term moving average crosses above a long-term moving average on a price chart.

The short-term moving average is typically calculated over a shorter time frame, such as 50 days, while the long-term moving average is calculated over a longer time frame, such as 200 days.

How to trade? If you are using 50 and 200 days combination. For investing you can it get as your main indicator. For day and swing trading, you can get an idea for overall momentum, to help take better trading with you indicator setup. 

9 and 21 days works best for swing trading. 

50 and 200 days Golden crossover on day frame

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9 and 21 days Golden crossover on day frame

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Edited by Rishabh Tyagi
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