Trading strategies
Golden cross
Definition
A shorter average crossing above a longer one, classically the 50-day above the 200-day on a daily chart. Read as bullish.
Example
Say a stock bottoms at $80 and climbs to $105 over the next three months. Along the way its 50-day SMA rises through its 200-day SMA, with both near $95: a golden cross. Because both averages lag, the cross prints only once price has already reached $105, about 31% above the low.
Hypothetical numbers, for illustration only.
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