The Death Cross is inherently well known in our trading world. A lot of trading strategies are built around this signal. The opposite signal of the death cross is the Golden Cross

As we all know, the death cross occurs when the MA 50 crosses below the MA 200. Our job is to utilize this signal to form a trading strategy.

Step 1: Wait for the 50-day EMA to cut below the 100 EMA. The two moving averages need to converge with price action

As shown below:


As we can see the 50 EMA cuts down to the 100 EMA at the same time the price is testing the MAs. This is the first condition that we need.

Step 2: Entry point

We will have 2 entry points. The first point is to sell on a candle that closes below the 50 and 100 EMA.


Selling point 2 is when the price breaks and closes below the 200 EMA. As shown below:


Use multiple entry points to improve the entry points of this strategy. Note, when the death cross is gradually forming, you can enter half of your expected volume to sell when a candle closes below the 50 EMA and 100 EMA (50 EMA must cross below 100 EMA. ), you then execute the next sell when the price closes below the 200 MA.

Step 3: Place stop loss above 50 EMA which is 100 EMA

If the price moves back above these two moving averages, the market is not going in the direction we wanted. So you need to place your stop loss here. As shown below:


Step 4: Take profit when the price surpasses the highest price of the candle at the time of the death intersection signal

First, you need to mark on the high price chart of the candlestick when the 50-day EMA crosses below the 200 EMA (a death cross). And make a profit when this high is broken.


Above is the strategy for selling orders. For buy orders, we use the same principle but the opposite. In the case of a buy order, it is called the Golden Cross. As shown below:



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