Golden cross
In short
#TradingA golden cross occurs when the 50-day moving average crosses above the 200-day moving average. The opposite crossing is called a death cross.
Why it matters
It is the most headline-friendly technical event there is, which is why it appears in far more articles than its record justifies. Both averages are lagging, so the crossing happens well after the trend has turned. It confirms a move that is already underway rather than signalling a new one.
Example
A stock bottoms at $80 and rallies to $115 over four months. Only then does its 50-day average cross above the 200-day, generating a golden cross after roughly 40% of the recovery has already happened.
Frequently asked
Is a golden cross a reliable buy signal?
On its own, no. It is a lagging confirmation of an existing uptrend, and it produces false signals in choppy markets. Its main practical use is regime context, not entry timing.
What is a death cross?
The 50-day average crossing below the 200-day. It carries the same lag in the other direction and frequently prints near the end of a decline rather than the start of one.