Nothing in this article is to be construed as investment advice. Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses incurred as a result of this information.
Read more: https://cryptovest.com/news/top-altcoins-for-q4-2018-crypto-market-overview-and-analysis/
Why use golden crossovers as the measure of future performance?
Golden crossovers are one of the strongest confirmations you can use in trading to determine bullish reversals, especially over broader time periods such as 4hr and 1D candles. This does not mean that an asset is guaranteed to continue bullish indefinitely, though. The 50EMA can oscillate above and below the 200EMA frequently if momentum is not consistent, or if trading sentiment is uncertain. The usual rule is the more perpendicular the convergence, the stronger the reversal.
Category 1: Coins in this category already have a golden crossover on their charts, which indicates strong bullish momentum has already started to pick up behind these assets. However this also means that the early bullish gains have already been missed.
It is worth noting that Ripple (XRP) and Stellar Lumens (XLM) already had their golden crossovers during their respective surges last month, but have already started to correct from their peak price points. This isn’t to say that these two cryptos will not continue bullish, but for now we’re focusing on coins that haven’t hit their highs just yet.
Category 2: This category is for coins in the top 35 that appear most likely to achieve golden crossovers soon, provided bullish momentum continues to remain consistent. These obviously carry more risk than Category 1 coins but could deliver stronger returns from getting in early if successful.
Other coins in this category include; IOTA (MIOTA), Ethereum (ETH) and Cardano* (ADA).
At this stage we should also take into consideration coins in the top 35 that actually express a ‘Death Cross’ on their charts. This is the complete opposite to a golden crossover and is a very strong bearish signal where the 50 EMA falls through the 200 EMA.