A Golden Cross is a technical signal that occurs when a short-term moving average crosses above a long-term moving average. This is considered a bullish indicator, as it suggests that the price trend is shifting from downward to upward. In a downtrend, the short-term moving average usually remains below the long-term moving average, while in an uptrend, the short-term moving average usually stays above the long-term moving average. This is because the short-term moving average is more responsive to the recent price changes, while the long-term moving average is more stable and reflects the overall trend. Conversely, a Death Cross is a technical signal that occurs when a short-term moving average crosses below a long-term moving average. This is considered a bearish indicator, as it suggests that the price trend is reversing from upward to downward. A Golden Cross and a Death Cross are more reliable in a strong trending market, as they may produce false signals in a choppy or sideways market.
Our Trend Following Signals
Technical Stock Screener allows users to see a list of stocks that have formed Golden Cross and Death Cross signals in several different time frames.