Golden Cross

AAA

DEFINITION of 'Golden Cross'

A crossover involving a security's short-term moving average (such as 15-day moving average) breaking above its long-term moving average (such as 50-day moving average) or resistance level.

Golden Cross

INVESTOPEDIA EXPLAINS 'Golden Cross'

As long-term indicators carry more weight, the Golden Cross indicates a bull market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new support level in the rising market.

Technicians might see this cross as a sign that the market has turned in favor of the stock.

RELATED TERMS
  1. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  2. Moving Average Chart

    A tool used by technical analysts to track the price movements ...
  3. Technical Analysis

    A method of evaluating securities by analyzing statistics generated ...
  4. Resistance (Resistance Level)

    A chart point or range that caps an increase in the level of ...
  5. Bull

    An investor who thinks the market, a specific security or an ...
  6. Short Term

    1. In general, holding an asset for short period of time. 2. ...
Related Articles
  1. Confirm Forex Momentum With Heikin Ashi
    Forex Education

    Confirm Forex Momentum With Heikin Ashi

  2. Weighted Moving Averages: The Basics
    Active Trading Fundamentals

    Weighted Moving Averages: The Basics

  3. The New World Of Emerging Market Currencies
    Forex Education

    The New World Of Emerging Market Currencies

  4. The Six Things Investors Should Do Now
    Fundamental Analysis

    The Six Things Investors Should Do Now

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center