What is a golden cross?

Golden cross is the opposite of a death cross

A golden cross is a technical pattern that occurs when a security’s short-term moving average crosses above its long-term moving average. Typically, traders use the 50-day and 200-day figures.

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The pattern is a signal to investors that a long-term rally may be underway.

Golden crosses usually don’t occur until an index or security has already begun its uptrend. Typically a golden cross has more meaning when both moving averages are upward sloping.

While a golden cross is a sign of a bullish bias, traders typically use other indicators to strengthen their conviction that a rally is coming.

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The golden cross is the opposite of a death cross, which occurs when the 50-day moving average crosses below the 200-day moving average.