Golden Cross

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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.

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RELATED FAQS
  1. 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 >>
  2. 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 >>
  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. How are double exponential moving averages applied in technical analysis?

    Double exponential moving averages (DEMAS) are commonly used in technical analysis like any other moving average indicator ... Read Full Answer >>
  6. How do you know where on the oscillator you should make a purchase or sale?

    Common oscillator readings to consider making a buy or sale are below 20 or above 80, respectively. More aggressive investors ... Read Full Answer >>
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