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. Is it better to use fundamental analysis, technical analysis or quantitative analysis ...

    The most common methods that investors use to analyze the benefits and risks associated with long-term investment in the ... Read Full Answer >>
  6. What are the benefits of investing in a cyclical stock?

    Cyclical stocks tend to be highly correlated with the overall business cycle, so an investor can invest in a cyclical stock ... Read Full Answer >>
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