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golden cross

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Financial Dictionary

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.

Investopedia Commentary

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.

Related Links

Moving Averages Tutorial
Introduction To Technical Analysis
Basics of Weighted Moving Averages

See also: Bear, Bull, Crossover, Death Cross, Indicator, Long-Term, Moving Average, Moving Average Chart, Resistance, Short-Term, Support, Technical Analysis, Volume

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