Golden Cross

Search Dictionary

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.

Click image for original size
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.

Do you have a trading or investing definition for our dictionary? Click the Create Definition link to add your own definition. You will earn 150 bonus reputation points for each definition that is accepted.

Is this definition wrong? Let us know by posting to the forum and we will correct it.