JoymistaWhat Are the Golden Cross and Death Cross?
A golden cross is a short moving average (usually the 50) crossing above a long one (usually the 200); a death cross is it crossing below.
Explained
A golden cross is read as the medium-term trend improving, a death cross as it weakening. Built from two lagging averages, it arrives after price has already moved a lot, and in sideways markets it gives repeated false signals.
Example
Example with made-up numbersYesterday the 50 average was 99 and the 200 was 100; today the 50 is 101 and the 200 is 100.2, so the short one crossed above the long one: a golden cross.
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Open in JoymistaEducational content, not investment advice.