✨ Golden Cross - Strong bullish signal
✔ What is it?
When the 50-day moving average (50 SMA) crosses above the 200-day moving average (200 SMA).
✔ What does it mean?
· Strong signal to start a Bull Market.
· Indicates increasing buying momentum and may continue to rise for months.
· It is preferable to confirm the signal with high trading volume.
✔ Example of the chart:
✓ After the crossover, the price starts to form higher highs and lows.
✓ Often a good opportunity to buy in the medium/long term.
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💀 Death Cross - Bearish warning
✔ What is it?
When the 50-day moving average (50 SMA) crosses below the 200-day moving average (200 SMA).
✔ What does it mean?
· Warning of an impending Bear Market.
· Indicates weak buying momentum and seller dominance.
· May coincide with negative economic events or market fears.
✔ Example of the chart:
✓ After the crossover, the price starts to form lower highs and lows.
✓ Seen as a signal to exit or short sell.
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🔍 Important tips when using these signals:
1️⃣ Do not rely on it alone: use it with other indicators like RSI or gains/losses.
2️⃣ Larger timeframes are more reliable (daily or weekly is better than hourly).
3️⃣ Beware of false signals: especially in sideways markets.
📌 Note:
· The golden cross in leading stocks (like Apple or Amazon) may be a stronger signal.
· Death cross in market indices (like S&P 500) may signal a general decline.
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