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Glossary · Pro tools

Golden cross

The 50-day average price crossing above the 200-day average.

Why it matters

It marks the point when the recent trend turns stronger than the long trend. The opposite, a death cross, is the 50-day falling below the 200-day.

How to read it

It is slow by design: it misses the start of moves and keeps you out of the worst of long declines. Test it in the strategy tester before relying on it.

Also called: death cross

Related

Moving averageThe average closing price over a set number of days, drawn as a line.MACDMomentum shown as the gap between a fast (12-day) and a slow (26-day) average of the price.BacktestTesting a trading rule on past prices to see how it would have done.

In the Cluenex app, this explanation opens next to every golden cross figure, with the live reading for the stock you are looking at. Open it in Cluenex