Golden Cross

What is Golden X?

A bullish signal occurring when the 50-day moving average crosses above the 200-day moving average.

Think of it like this

Like when a sprinter catches up to and passes a marathon runner - short-term momentum overtaking long-term trend.

Formula

SMA(50) crosses above SMA(200)
  • SMA(50): Short-term trend (50 trading days)
  • SMA(200): Long-term trend (200 trading days)

Why it matters

  • Major bullish technical signal
  • Often marks start of long-term uptrends
  • Widely followed by institutions
  • Can trigger significant buying

What's a good value?

Cross Confirmed
Bullish
New uptrend beginning
Approaching
Watch
Signal may be imminent
SMA50 > SMA200
Uptrend
Currently in bullish configuration
SMA50 < SMA200
Downtrend
Currently in bearish configuration

Real-world example

The S&P 500's golden cross in 2019 preceded a major bull market run.

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