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Re: rvd post# 63079

Monday, 06/25/2012 4:22:49 PM

Monday, June 25, 2012 4:22:49 PM

Post# of 81578
RVD, Opposite of "Golden Cross" is "Death Cross"

Definition of 'Death Cross'
A crossover resulting from a security's long-term moving average breaking above its short-term moving average or support level.


But read the following carefully because there is a "kicker"

Investopedia explains 'Death Cross'
As long-term indicators carry more weight, this trend indicates a bear market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new resistance level in the rising market.



True, while anytime the short trend drops below the longer trend we have a bearish situation. But several factors here negate a true "Death Cross". For one thing, the lines shouldn't just drift across each other. There should be a rather violent downturn shown by the short trend line crashing down in a dive of normally 30 to 45 degrees. Also, note that the situation is certainly not "reinforced by high trading volumes" as is common to the condition according to Investopedia. That's the "kicker"

So I'm glad to proclaim that, at this time, it ain't a Death Cross.

Wheeeeee!



All truth passes through three stages. First, it is ridiculed. Second, it is violently opposed. Third, it is accepted as being self-evident. - Arthur Schopenhauer (1788-1860)