How accurate is the Golden Cross?

Asked by: Salvatore Lang  |  Last update: December 13, 2025
Score: 4.2/5 (34 votes)

Going back to 1950, it has a 100% accuracy of predicting bear market endings and bull market beginnings. It is triggered only when a convincing golden cross happens after a long bear market.

What is the most accurate stock market indicator?

Which indicator has the highest accuracy? The Moving Average Convergence Divergence (MACD) indicator is often considered one of the most accurate technical indicators. That is because it uses a combination of moving averages to spot potential buy and sell signals.

Is golden cross a good strategy?

Advantages. Confirms long-term trends: A golden cross can help confirm the presence of a long-term trend, making it easier for traders to align their strategies with the prevailing market direction.

How accurate is the death cross?

The death cross has helped predict some of some of the worst bear markets of the past 100 years: e.g., in 1929, 1938, 1974, and 2008. Nonetheless, because it's a lagging indicator, meaning that it only reveals a stock's past performance, it's not 100% reliable.

What is the difference between the Golden Cross and the death cross?

Golden Cross: A long-term bullish signal, seen when the 50-day average crosses above the 200-day, suggesting sustained positive momentum. Death Cross: A bearish trend confirmation when the 50-day average falls below the 200-day, signaling caution or short positions.

golden cross and death cross technical analysis : golden cross : wave trend : day trading

18 related questions found

How accurate is the last King of the Cross?

Last King of the Cross is a dramatisation inspired by true events from John Ibrahim's autobiography. Several characters and events represented in the series are fictional.

What is the golden cross theory?

Key Takeaways. A Golden Cross is a technical chart pattern indicating the potential for a major rally. The Golden Cross appears on a chart when a stock's short-term moving average crosses above its long-term moving average. The Golden Cross can be contrasted with a Death Cross, which indicates a bearish price movement.

How long does a golden cross last?

A Golden Cross is a basic technical indicator that occurs in the market when a short-term moving average (50-day) of an asset rises above a long-term moving average (200-day). When traders see a Golden Cross occur, they view this chart pattern as indicative of a strong bull market.

What is the opposite of a golden cross?

The death cross is the exact opposite of the golden cross, signaling a decisive downturn in a market. The death cross occurs when the short-term average trends down and crosses the long-term average. That is, it's moving in the opposite direction of the golden cross.

What is the alternative to the Golden Cross?

The death cross is opposite of golden cross, and it occurs when 50 MA (short-term moving average) crosses below 200 MA (long-term moving average). In the below image we represented S&P 500 daily chart during the 2008–2009 financial crisis.

What happens when 200 ma crosses 50ma?

The golden cross occurs when the 50-day moving average of a stock crosses above its 200-day moving average. The golden cross, in direct contrast to the cross of death, is a strong bullish market signal, indicating the start of a long-term uptrend.

What is the death cross moving average?

The death cross appears on a chart when a stock's short-term moving average, usually the 50-day, crosses below its long-term moving average, usually the 200-day. The rise of the 50-day moving average above the 200-day moving average is known as a golden cross and can signal the exhaustion of downward market momentum.

Which indicator gives the highest accuracy?

1. Moving Averages (MA) The Moving Average (MA) is a key player in technical analysis and the most profitable trading indicator. It helps smooth out price data and bring attention to underlying trends.

What indicator do most traders use?

Best trading indicators
  • Stochastic oscillator.
  • Moving average convergence divergence (MACD)
  • Bollinger bands.
  • Relative strength index (RSI)
  • Fibonacci retracement.
  • Ichimoku cloud.
  • Standard deviation.
  • Average directional index.

What is the most accurate stock market index?

The S&P 500, with its broader representation and status as the go-to benchmark for professional investors, provides a more comprehensive view of large-cap U.S. equities. The Nasdaq Composite, with its tech-heavy composition, helps gauge the growth sectors that often drive market news.

Is Golden cross a good indicator?

There are numerous reasons for the golden cross to be considered an important technical indicator. Trend Reversal Confirmation: It is considered a reliable indicator of a long-term trend reversal if confirmed by other technical signals.

What is the best timeframe for the Golden cross?

What timeframes should I use these signals on? Investors often use these signals on a daily price chart since the death cross and golden cross use 200-day and 50-day MAs. Traders are not confined to these parameters. They may opt to use 200-period and 50-period MAs on any timeframe of their choosing.

When can I sell after Golden cross?

If the Cross SMA 50/200 value is less than 1, this shows that the 50 day moving average is below the 200 day moving average (a death cross), is a sell signal as the stock prices has fallen and may continue to drop.

What is a strong bull market?

A bull market is when stocks steadily rise, usually during the expansion phase of the business cycle. Bull markets are usually accompanied by high investor confidence and a strong overall economy. Most investors should stick to their long-term strategy and goals rather then trying to time the market.

How to interpret Bollinger Bands?

As the price touches or moves outside the upper band, it could be overbought, suggesting a potential selling or short opportunity. Similarly, if the price touches or falls outside the lower band, the asset may be oversold, indicating a possible buying opportunity. The bands can also help find price targets.

What is MacD Golden cross?

The MACD golden cross is a key signal in technical analysis. It's used in stock, forex, and cryptocurrency markets. This signal is known for predicting when the market will go up. This article will explain how the MACD golden cross works, its history, and how it's used today in trading.

Who is Ezra Shipman based on in real life?

Last King of the Cross is based on John Ibrahim's 2017 memoir of the same name but takes a fair amount of creative licence in adapting the story for television. Tim Roth played series one antagonist Ezra Shipman who was loosely based on real Kings Cross identity George Freeman who died in 1990.

How did they know it was the true cross?

In Socrates's version of the story, Macarius had the three crosses placed in turn on a deathly ill woman. This woman recovered at the touch of the third cross, which was taken as a sign that this was the cross of Christ, the new Christian symbol.

What is the life expectancy in Kings Cross?

This shows that the life expectancy at birth for a male in King's Cross is 82.4 years compared to the Camden average of 82.1 and ranks 9th highest amongst Camden wards. For a female, average life expectancy is 88.4 years compared to the Camden average of 86.5 and ranks 5th highest.