Golden Cross
Category: science
A chart pattern that occurs when a short-term moving average crosses above a long-term moving average.
The Golden Cross is a classic bullish signal. It typically occurs when the 50-day SMA crosses above the 200-day SMA. It suggests that recent price momentum is strongly outpacing historical trends, often marking the beginning of a prolonged bull market phase.
Common Examples
- The sector-wide Golden Cross triggered our portfolio rebalancing algorithm, increasing our long exposure across the industrial index.
- Never trade on a Golden Cross in isolation; always confirm the signal with volume spikes and broader market trend support.