Golden Cross

The golden cross is a technical analysis indicator used in stock trading that signals the beginning of a bullish trend. It is formed when a short-term moving average (such as the 50-day moving average) crosses above a long-term moving average (such as the 200-day moving average). This crossover indicates that the short-term trend is now stronger than the long-term trend, and that the stock price is likely to continue to rise. The golden cross is often used by traders as a buy signal, as it suggests that the stock is likely to continue to increase in value.

History of the Golden Cross

The golden cross is a technical analysis indicator that was first developed by Japanese stock trader Goichi Hosoda in the late 1960s. Hosoda developed the indicator as part of his Ichimoku Kinko Hyo system, which is still used by many traders today. The golden cross is one of the most widely used technical analysis indicators, and is often used in conjunction with other indicators such as the moving average convergence divergence (MACD) and the relative strength index (RSI).

Comparison Table

Summary

The golden cross is a technical analysis indicator used in stock trading that signals the beginning of a bullish trend. It is formed when a short-term moving average crosses above a long-term moving average, indicating that the short-term trend is now stronger than the long-term trend. The golden cross is often used by traders as a buy signal, as it suggests that the stock is likely to continue to increase in value. For more information about the golden cross, traders can visit websites such as Investopedia, The Balance, and Investing.com.

See Also

• Death Cross
• Moving Average Convergence Divergence (MACD)
• Relative Strength Index (RSI)
• Ichimoku Kinko Hyo
• Support and Resistance
• Trendlines
• Bollinger Bands
• Price Channels
• Parabolic SAR
• Fibonacci Retracements

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