the death cross & the golden cross: stock technical indicators you must know // death cross market death cross dow jones, death cross stock, death cross stocks, golden cross stocks, stock death cross, moving average strategy, moving average stock, moving average trading strategy, moving average strategy, moving averages trading, moving averages trading strategy, stock technical indicators, stock market technical analysis, stock technicals, stock technical analysis, stock market basics, stock trading basics welcome to looking at the markets with david moadel today i wanted to talk about the death cross and the golden cross all right now these are possible signs of a down trend or an uptrend
stock price for aapl, alright so let's take a look this is an example of a death cross right this is the daily candlestick chart and i got this from
stockcharts.com and generally speaking a death cross is when a short-term moving average crosses or breaks below a longer-term moving average alright so the blue line here is the shorter-term 50-day moving simple moving average ok this is a shorter-term moving average and it's the 50 day simple moving
average that's the blue line and the red line is the 200-day simple moving average and that's a longer-term indicator right and so this is a death cross we've got the 50-day crossing below the 200-day simple moving average and basically it's not a it's certainly not a perfect indicator it does not always work
alright but it's something to possibly alert you to you might just consider exiting or getting out of your long position if you have one ok so here's a perfect example this is gld which is the gold etf and a death cross happened right here the blue line broke below the red line and if you had exited your long position
here in gld you would have saved yourself from quite a bit of short-term you know downward price action and again it doesn't always happen like that but you could have saved yourself a lot of headaches and and financial loss there especially if you had call options because you know you you've got all these days of the price going down and
you're losing value of your call options due to time decay things like that so that's one example here's another example this is tlt which is the bond etf and here is a death cross and this occurred right about here and as you can see after the death cross the price went down down down in the short term alright so that would have been a good
time to exit your long position here's another example mx pt and i don't know if you can see it might be hard to see but there's a death cross right here the 50-day moving average crossed or broke below the 200-day moving average right here and as you can see if you had exited your long position you would have saved yourself from a lot of downward
price movement a lot of financial loss there and here's mhf another death cross here right there as you can see if you had exited your position when the death cross occurred you would have prevented a lot of financial loss there from here all the way down to here
ok so that's the death cross and again it's just something to consider you might consider exiting your long position if you have one there it's not perfect and it doesn't it does not always work now what about the golden cross well the golden cross is the opposite of the death cross it's potentially good news it's when the
shorter-term moving average breaks above the longer-term moving average more specifically in this case it's the 50 day simple moving average breaking or crossing above the 200-day simple moving average like right here the blue line crossing abroad above the red line this is apple stockier and if you had purchased apple stock when there was a
golden cross and and if you had held on in the short term actually didn't even take that long a few weeks and you would have made a nice profit there from here all the way up to here and here's starbucks and right here is a golden cross with the blue line crossing above the red line and if you had made a purchase right here you would have you
would have done well it wouldn't have taken very long at all to see a nice profit there here's mco a marijuana company of america here's a golden cross the 50 dave crossing above the 200-day simple moving average and if you had made a purchase of this stock or call options right here
i think you would have done pretty well especially in the short term it it went straight up pretty much and then here's a mmj and here's a golden cross and if you had purchased the stock right here you would have done quite well it went up and up and up quite a bit would have made a nice profit there and again it's not a perfect indicator i'm not telling
you what to buy or 12 x or when to sell but these are examples of the price action going up after a golden cross which sometimes oftentimes means that the trend is up and it's good news for the stock or the company ok so if this was helpful then please give this video a thumbs up on youtube and leave comments and also please
subscribe to my youtube channel so you can receive the latest updates on my financial educational videos and if you want to contact me you can email me anytime at david modell @ gmail.com thank you so much i appreciate it and i'll talk to you soon
