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.
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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.
They originated in Japan the 1700s, as a way to measure the supply & demand of the rice markets:
Contagion, in financial terms, refers to the diffusion of economic booms, and can occur both domestically and globally. It is basically a spread of an economic crisis from one region to another, and spreads on an international level due to the global market interdependence.
The term contagion was coined during the 1997 Asian financial crisis, but it was occurring namelessly even during the Great Depression in the 1930s.
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