4. Death cross Trading

 

 

What is a death cross?

 

 

A chart in which the 20 moving average breaks below the 60 moving average, which is interpreted as a strong downtrend reversal.

 

 

 

The red line above is the 20 moving average, and the blue line is the 60 moving average.

 

Contrary to Golden Cross, the 20 moving average breaks through the 60 moving average.

 

There are two trading methods we can do in the death cross picture.

 

(1) Short selling

 

(2) Picking up the lows

 

 

 

◆ Bitcoin 240 mins + RSI 30

 

 

 

 

 

(1) Short selling

 

Short selling can be done through overseas futures exchanges. By betting on a falling price, it is better to enter after seeing a death cross. In the actual death cross picture, there are many cases where there is no cross, and in this case, there is a strong tendency to turn into an uptrend.

 

As for the stipend, I usually look at the 240th or 30th stipend, and the probability is high when both of them are death cross pictures.

 

(2) Picking up the lows

 

A death cross picture of the next bearish market is easy to pick up lows. In the end, even if it declines due to the death cross, there is of course a rebound section, right? Then, there is a way to pick up the low in the expected rebound section and climb on it.

 

So when is the rebound coming? This is when the oversold section is checked through the RSI indicator at the death cross, and the oversold section below RSI 30 is the buying time.

 

 

cf.RSI Indicators [Related]

 

 

 

 

◆ 3 minutes of Ethereum + 30 RSI lines

 

 

 

Among them, as shown in the chart above, the RSI indicator below 30 is called an oversold section, and the best time to enter is when the RSI indicator rises above 30.