death cross pattern in forex trading

In this article we want to learn one of the most profitable and best Forex strategies, this strategy has a high win rate and at the same time is very convenient, this strategy is called Death Cross. This strategy is suitable for selling positions, and by using this strategy we can open excellent selling positions and make good profits from price reductions. When the death cross is formed on the chart, we should be ready to open a selling position because after the formation of this pattern, the price will fall sharply.

This strategy is easy to implement and has an acceptable win rate because it uses three moving averages with different periods (lengths). Stay with us in the continuation of this article as we introduce moving averages and how to use them in this strategy.

3 moving averages are used in this strategy

Moving average 50 = yellow
Moving average 100 = blue
Moving Average 200 = Purple

Add the 50, 100 and 200 moving averages to your chart and choose a different color for each of them so that you can easily identify them on the chart. When the yellow moving average crosses the blue moving average to the downside, and the blue moving average crosses the purple moving average to the downside, and the candles are placed below our moving averages, the death cross occurs and we can be ready to sell.

At this point, the yellow moving average is below the blue moving average and the blue moving average is below the purple moving average.

Photo by Trading View website

You can clearly see the death cross in the photo above. At this point, after the second cross, we can open our position and enter the downward trend. Note that in the picture above we are in the 4-hour time frame and this amount of changes in the 4-hour time frame can bring us very good profits.

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