Golden Cross

The golden cross is a powerful bullish signal that typically uses the 50-day moving average crossing above the 200-day moving average. This pattern suggests a potential long-term bull market and is watched by many institutional traders. The golden cross occurs in three stages: a downtrend that eventually bottoms out, the shorter moving average crossing above the longer one, and the continuation of the uptrend. While it's a lagging indicator, it's considered reliable for confirming trend changes. The opposite pattern, where the 50-day crosses below the 200-day, is called a death cross.