Golden Cross

A golden cross is a technical analysis pattern in which a short-term moving average crosses above a long-term moving average. It is a bullish signal and is used by traders to identify potential buying opportunities.

The term "golden cross" comes from the shape created by the crossing of the two moving averages, resembling a cross. The short-term moving average typically used is the 50-day moving average, while the long-term moving average is usually the 200-day moving average.

When the 50-day moving average crosses above the 200-day moving average, it suggests that the overall trend is turning bullish, indicating a shift from selling pressure to buying pressure. This often results in an increase in buying activity and can lead to a bullish price movement.

While the golden cross is a widely recognized technical pattern, traders should always conduct further analysis and use it in conjunction with other indicators and trading strategies to make informed decisions.

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