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Golden cross and death cross

A golden cross occurs when the 50-period moving average crosses above the 200; a death cross when it crosses below. Long-term trend signals.

These crossovers, mostly watched on daily charts of indices and large stocks, are among the most talked-about technical signals. The golden cross is read as a shift into a long-term uptrend, the death cross as the opposite.

They are slow by design: by the time the 50 crosses the 200, much of the move has often already happened. In a trendless market, they can follow one another and trap you.

Use them as a context filter rather than an entry signal: for example, only take buys while the 50 stays above the 200.

The full lessonMoving averages: SMA, EMA and crossoversSMA or EMA, 20, 50 and 200 periods, crossovers and dynamic support: understand moving averages, how they are calculated, why they lag and how to use them.← Full glossary