Golden Cross

A crossover involving a security's short-term moving average (such as 20-day moving average) breaking above its long-term moving average (such as 50-day moving average) or resistance level.




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.




Moving Averages Tutorial - Here we help you make moving averages a part of your set of analytical tools. You will learn the way moving averages work, the different versions of moving averages, and some of the strategies that use them.

Introduction to Technical Analysis - Here is an easy-to-understand tutorial on the various tools used in technical analysis, including moving averages, RSI, Bollinger bands, stock chart patterns, and much more.

Basics of Weighted Moving Averages - Take a closer look at the linearly weighted moving average and the exponentially smoothed moving average.
Related Terms

Bear

Bull

Crossover

Death Cross

Indicator

Long-Term

Moving Average

Moving Average Chart

Resistance

Short-Term

Support

Technical Analysis

Volume

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