What is a Golden Cross?
How Does a Golden Cross Work?
Because Company XYZ’s 15-dayhas been increasing, by the end of two weeks, the 15-day is now higher than the 200-day . The point at which the rising 15-day crosses (that is, equals) the 200-day is called the golden cross.
Why Does a Golden Cross Matter?
A golden cross is a telltale sign of bullish sentiment for a stock and sometimes for the economy as a whole. Thus, investors who watch technical trading charts tend to buy a stock when the short-term rises above the long-term , and they tend to sell when the short-term falls below the long-term .