Golden Cross
A bullish signal when the 50-day moving average crosses above the 200-day moving average.
What is Golden Cross?
A golden cross occurs when a shorter-term moving average — typically the 50-day — crosses above a longer-term moving average — typically the 200-day. Technical analysts interpret this as a bullish momentum signal, suggesting near-term buying pressure has overtaken selling pressure and that a sustained uptrend may be developing. Like the death cross, it is a lagging indicator based on historical prices, often appearing after a significant portion of the move has already occurred. The golden cross is most reliable when accompanied by rising trading volume, improving earnings fundamentals, and a supportive macroeconomic backdrop — rather than used in isolation as a standalone buy signal.
Example
In April 2020, the S&P 500's 50-day moving average crossed above the 200-day moving average, generating a golden cross signal. By this point, the market had already recovered about 25% from its March lows. Investors who waited for the golden cross confirmation before buying missed a significant portion of the recovery — illustrating both the signal's usefulness as trend confirmation and its limitation as a timing tool.
Source: Investopedia — Golden Cross