Golden Cross vs. Death Cross - Differences
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Technical analysis involves the use of statistical analysis to make trading decisions. Technical analysts use a ton of data, often in the form of charts, to analyze stocks and markets.
Both refer to the solid confirmation of a long-term trend by the occurrence of a short-term moving average crossing over a major long-term moving average.
The golden cross occurs when a short-term moving average crosses over a major long-term moving average to the upside and is interpreted by analysts and traders as signaling a definitive upward turn in a market.
There are three stages to a golden cross:
Conversely, a similar downside moving average crossover constitutes the death cross and is understood to signal a decisive downturn in a market.
The death cross occurs when the short term average trends down and crosses the long-term average, basically going in the opposite direction of the golden cross.
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