Trading Signals
Golden Cross
The Golden Cross is a very rare signal under normal market conditions and is one of the most significant bullish signals to be generated by any trading system. It almost always precedes a significant bull run in the instrument. To form a golden cross, the 50 day moving average must cross from below the 200 day moving average to above the 200 day moving average, whilst the 200 day moving average must also be rising. It is particularly important that the 200 day moving average is rising, since this often provides support for the coming rise. It signifies that the instrument has truly bottomed out and is beginning a new and major bull run. Confirmation that the market has finally begun to turn bullish when a Golden Crosses appears in the indices and in many of the underlying companies.
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