Golden cross
When a short-term moving average (usually 50 days) rises above a long-term one (usually 200 days). Often treated as a buy signal.
In plain English
Traders watch two moving averages: a fast one and a slow one. When the fast one climbs above the slow one, the recent trend is stronger than the long-term trend. The famous version uses the 50-day and 200-day averages, and financial news loves to report it.
Uncle Gary explains
Cousin Kevin's gym attendance over the last three months just rose above his yearly average. Golden cross! He has bought a protein shaker. History suggests the shaker will be living in a kitchen cupboard by March.
Why it matters for your money
In our test, buying on a golden cross made money. Buying a random stock on the same day made the same money. The signal itself added nothing.
Where we tested it
Related terms
All glossary terms. Educational content, not financial advice.