Golden Cross
| When the short-term moving average crosses over the long-term moving average, a golden cross appears on the chart. This indicates that the short-term trend is now starting to move up above the long-term trend, which is a bullish sign. The golden cross is a popular technical indicator used by many traders and investors to help identify potential market reversals or trend changes. While there is no guarantee that a golden cross will always lead to a bullish market, it is often seen as a strong signal that the current trend may be about to change. There are a few things to keep in mind when using the golden cross indicator. First, it is important to remember that this is a lagging indicator, which means that it can take some time for the signal to develop. Second, the indicator is not perfect and there will be false signals from time to time. Finally, the indicator should be used in conjunction with other technical indicators and market analysis to confirm the signal. |
Share this glosssary
