Golden cross
The 50-day average moving from below the 200-day average to above it.
What it shows
The 50-day and the 200-day averages are the most-watched pair. A golden cross is when the 50-day crosses above the 200-day. It tells you the recent average price has moved above the long-term average.
The name is a convention. It is a fact about two lines, and the lines lag, so the cross comes after price has already moved.
How we find it
The same code that draws it on your chart follows these steps, with the same result every time.
- Compute the 50-day and 200-day SMA of the close.
- Find the bar where the 50 moves from below the 200 to above it.
- Mark it on the chart.
- Show the date and the price.
Starting values: Short 50; Long 200. These are proposed and will be tuned on real price data before launch.
How to read it
- The blue line is the 50 and the gold line is the 200.
- The gold dot is the cross.
- The distance between the lines shows how far apart the short and long averages are.
Status labels you may see
| Label | What it means |
|---|---|
| 50 above 200 | The 50-day average is above the 200-day. |
| Just crossed | A golden cross occurred in the last 10 bars. |
| No cross in range | No cross in the period shown. |
What cancels it
A death cross, which is the reverse.
What traders check next
- Price relative to both averages.
- How long ago the cross was.
- The slope of the 200-day.
Limits
- The 200-day needs at least 200 bars, so short periods have no cross.
- It lags price by a long way.
- Crosses can reverse quickly.
Try it in forecastviz
- Open any ticker and choose Moving averages → Golden cross in the left menu.
- Switch between 3Y, 5Y, 10Y to see how the picture changes.
- Compare with Death cross and 20 and 50 average crossover on the same chart.
Questions
Is a golden cross good news?
The name sounds positive, but it is a description of two averages. We make no claim.
Why 50 and 200?
They are widely used, so many traders watch them.
Related trends
Further reading
- Murphy, Technical Analysis of the Financial Markets
- Kaufman, Trading Systems and Methods
- Achelis, Technical Analysis from A to Z
Educational only. Not financial advice, and not a price forecast. Charts are drawn by code from past price data, which may be delayed.