The Golden Cross and Death Cross - two signals that move billions of dollars.

The Golden Cross and Death Cross - two signals that move billions of dollars.

GOLDEN CROSS
When the 50-day moving average crosses ABOVE the 200-day moving average.
Signal: Bullish. Institutional money is flowing in. The trend is shifting upward.
Historical accuracy: the S&P 500 has gained an average of 15% in the 12 months following a golden cross.

DEATH CROSS
When the 50-day moving average crosses BELOW the 200-day moving average.
Signal: Bearish. Smart money is leaving. The trend is shifting downward.
When this happens, risk management becomes survival management.

IMPORTANT:
- These are LAGGING indicators. By the time they appear, the move has already started.
- They work best on daily and weekly charts. On a 5-minute chart they are noise.
- Always confirm with volume. A cross on low volume is a whisper. A cross on high volume is a shout.

#Trading #Stocks #Forex #GoldenCross #DeathCross #Learning #TechnicalAnalysis #MovingAverages #StockMarket #FinancialLiteracy

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Million Rory @rorymillion9991

The volume point is key honestly. I backtested these on some stocks last year and the ones with low volume cross just kinda fizzled. Meanwhile the high volume ones actually played out like they were supposed to. Learning that lesson the hard way lol
2 days ago

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Adesida sharon @sharonadesida4367

@Million Rory thanks for digging into that - I hadn't run it against volume like that, but it makes total sense. High volume crosses definitely seem to carry more weight. Appreciate you sharing the test results!
20 hours ago

Bamgboshe Amala @amalabamgboshe9803

@Million Rory Great call on that backtest. Volume really separates the real signals from the fakeouts. I've seen the same thing.
20 hours ago