Golden Cross


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

BREAKING DOWN '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.

  1. Indicator

    Indicators are statistics used to measure current conditions ...
  2. Moving Average - MA

    A widely used indicator in technical analysis that helps smooth ...
  3. Crossover

    The point on a stock chart when a security and an indicator intersect. ...
  4. Support (Support Level)

    The price level which, historically, a stock has had difficulty ...
  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. ...
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  1. How do I build a profitable strategy when spotting a Golden Cross pattern?

    The golden cross pattern offers trading opportunities in both trend trading and countertrend trading. The golden cross pattern ... Read Full Answer >>
  2. How effective is creating trade entries after spotting a Golden Cross pattern?

    The effectiveness of a trading strategy based on the golden cross pattern can vary widely from case to case. The golden cross ... Read Full Answer >>
  3. What is the difference between a Golden Cross and a Death Cross Pattern?

    The golden cross and the death cross are exact opposites. The golden cross indicates a long-term bull market going forward, ... Read Full Answer >>
  4. How are Golden Cross patterns interpreted by analysts and traders?

    The golden cross – which occurs when a short-term moving average crosses over a major long-term moving average to the upside ... Read Full Answer >>
  5. What are some of the most common technical indicators that back up Doji patterns?

    The doji candlestick is important enough that Steve Nison devotes an entire chapter to it in his definitive work on candlestick ... Read Full Answer >>
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