Golden Cross

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Definition of 'Golden Cross'

In technical analysis a Golden Cross is when a short term moving average (MA), (such as a 10 period MA) crosses over a longer term MA.

In this example chart the yellow line is a short term MA which crosses the blue (cyan) line which is a long term MA to form a golden cross.

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Example of a Golden Cross

The longer term MA's are more significant so a crossover is a confirmation signal of a trend. Look for volume confirmation as well at the crossover point.

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