What does Golden Cross & Death Cross mean?

A Golden Cross is when a stock's 50-day moving average crosses above its 200-day moving average, a classic bullish signal; a Death Cross is the opposite.

A Golden Cross happens when the 50-day SMA crosses ABOVE the 200-day SMA — a classic bullish signal. A Death Cross is the opposite: 50-day cutting BELOW the 200-day, often a bearish warning.

Golden Cross & Death Cross example

When a stock's 50-day moving average climbs above its 200-day average, that's a golden cross; when it drops below, that's a death cross. Because both are averages, the cross usually comes weeks after the turn in price.

Common beginner mistake

Buying because of a golden cross alone. It's a lagging signal that confirms what already happened, and it fails often enough that it shouldn't be a plan on its own.

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