Trader Definition – “Death” & “Golden” Cross

Trader Definition – “Death” & “Golden” Cross

“Death Cross”

Death Cross

Definition of ‘Death Cross’

A crossover resulting from a security’s long-term moving average breaking above its short-term moving average or support level.

Investopedia explains ‘Death Cross’

As long-term indicators carry more weight, this trend indicates a bear market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new resistance level in the rising market.

“Golden Cross”

Golden Cross

Definition of ‘Golden Cross’

A crossover involving a security’s short-term moving average (such as 15-day moving average) breaking above its long-term moving average (such as 50-day moving average) or resistance level.

Investopedia explains ‘Golden Cross’

As long-term indicators carry more weight, the Golden Cross indicates a bull market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new support level in the rising market.

Technicians might see this cross as a sign that the market has turned in favor of the stock.

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