In the triple filter, the weekly golden cross is long on the daily line?

A weekly golden cross in crypto signals long-term bullish momentum, prompting traders to seek long entries on daily and 4-hour charts with proper confirmation and risk management.

Jul 26, 2025 at 06:01 pm

Understanding the Triple Filter Strategy in Cryptocurrency Trading

The triple filter strategy is a multi-timeframe analysis technique used by traders to improve the accuracy of trade signals. It was popularized by trader Brian Shannon and is widely applied in cryptocurrency markets due to their volatility and trend-rich nature. The strategy involves analyzing three different timeframes to confirm the strength and validity of a trading signal. Typically, traders start with the weekly chart to determine the primary trend, then move to the daily chart for entry timing, and finally use the 4-hour or 1-hour chart to fine-tune entries and exits. When the title mentions “the weekly golden cross is long on the daily line,” it refers to a specific confluence within this framework where a golden cross on the weekly chart aligns with bullish momentum on the daily timeframe.

What Is a Golden Cross in Crypto Technical Analysis?

A golden cross occurs when a short-term moving average (typically the 50-period) crosses above a long-term moving average (usually the 200-period). This crossover is considered a strong bullish signal, indicating that momentum is shifting upward. In the context of weekly charts, a golden cross suggests a potential long-term bullish trend. For example, if Bitcoin’s 50-week moving average crosses above its 200-week moving average, it may signal the beginning of a bull market. Traders interpret this as a sign to look for long positions on lower timeframes. The reliability of the golden cross increases when it is accompanied by rising volume and occurs after a prolonged downtrend.

How the Weekly Golden Cross Influences Daily Chart Analysis

When a golden cross forms on the weekly chart, it sets the macro bias for lower timeframes. This means traders should prioritize long setups on the daily chart. The alignment of the weekly trend with daily momentum increases the probability of successful trades. For instance, if the weekly chart shows a golden cross, a trader would look for bullish patterns on the daily chart—such as a breakout above resistance, a retest of support, or a bullish engulfing candle—before entering a long position. The key is confirmation: the daily chart should not show strong bearish divergence or breakdowns that contradict the weekly signal. This confluence acts as a filter to avoid false entries.

Executing a Long Trade Based on the Triple Filter Setup

To execute a trade using this strategy, follow these steps:

• Confirm the golden cross on the weekly chart by checking that the 50-week MA has crossed above the 200-week MA.
• Switch to the daily chart and look for price action confirmation, such as a close above a key moving average (e.g., 50-day MA) or a breakout from a consolidation zone.
• Use the 4-hour chart to identify precise entry points, such as a pullback to a rising EMA or a bullish candlestick pattern near support.
• Set a stop-loss below the recent swing low on the daily chart to manage risk.
• Place a take-profit level based on measured moves or Fibonacci extensions, ensuring a favorable risk-reward ratio (e.g., 1:3).
  Ensure all exchanges or charting platforms used (like TradingView or Binance Futures) display accurate moving averages and allow multi-timeframe analysis.
  

  Common Pitfalls and How to Avoid Them

  
  Even with a strong signal like a weekly golden cross, traders can make mistakes. One common error is entering a long position too early, before the daily chart confirms the trend. Another is ignoring volume and market context—a golden cross during low volume may lack conviction. Additionally, whipsaws can occur in choppy markets, where moving averages cross back and forth. To avoid these issues:
• Wait for candle closure on the weekly chart to confirm the crossover.
• Use additional indicators like MACD or RSI on the daily chart to confirm momentum.
• Monitor on-chain data (e.g., exchange outflows, whale movements) to validate bullish sentiment.
• Avoid trading during major news events that could cause erratic price action.
  

  Backtesting the Strategy on Cryptocurrency Pairs

  
  To validate this approach, traders should backtest it on historical data. For example, examine BTC/USDT or ETH/USDT charts from 2016 to 2023. Identify all instances where a weekly golden cross occurred. Then, analyze how the price behaved on the daily chart in the following weeks. Did it continue upward? Were there immediate pullbacks? Tools like TradingView’s replay mode or Python libraries such as ccxt and pandas can automate this process. When backtesting:
• Mark each golden cross event on the weekly chart.
• Record the entry, stop-loss, and exit based on daily chart signals.
• Calculate win rate, average gain, and drawdown.
  This helps determine if the strategy performs consistently across different market cycles.
  

  Frequently Asked Questions

  
  Q: Does the golden cross work the same way on altcoins as it does on Bitcoin?
  A: The golden cross functions similarly across assets, but altcoins often exhibit higher volatility and may generate false signals more frequently. It’s essential to combine the signal with fundamental analysis or sector trends (e.g., DeFi or AI-related tokens) for better accuracy.
  

  Q: Can I use different moving averages instead of 50 and 200?
  
  A: Yes, some traders use 40 and 100-period MAs for a more responsive signal. However, deviating from the standard 50/200 may reduce the psychological impact, as many market participants watch the traditional setup.

  Q: What if the golden cross appears but the daily chart is still in a downtrend?
  
  A: This indicates a conflicting signal. The triple filter strategy requires alignment across timeframes. In such cases, it’s best to stay out of the market until the daily chart shows clear bullish confirmation.

  Q: How long should I hold a long position after entering based on this setup?
  
  A: Position duration depends on your trading style. Swing traders might hold for weeks, aiming for 20–50% gains, while long-term investors may hold for months or years, especially if the weekly trend remains intact. Use trailing stops to protect profits.