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Technical Analysis of Stock Trends => TA Bible |
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Golden Cross Pattern Definition Larger Charts for S&P500 & DJIA |
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| ForBestAdvice.com
- Money
- Definitions
- Golden Cross pattern
Technical Analysis of Stock Trends => TA Bible |
||
| Best CD Rates with FDIC |
Golden Cross Pattern Definition Larger Charts for S&P500 & DJIA |
|
|
|
||
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Definition
of the "Golden Cross" pattern:
A golden crossing occurs when the shorter-term 50-day moving average,
MA(50) in the chart below, crosses the longer term 200-day moving
average, MA(200).
These patters usually confirm major changes of market direction.
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Typically, it is a
bullish signal for stocks when the
50-DMA crosses above the 200-DMA. Likewise, it is typically a
bearish signal for sotkcs whe the 50-DMA crosses below
the 200-DMA.
More on chart patterns: The
Bible for technical analysis, Technical Analysis of Stock Trends, by Robert Edwards and John Magee Chapter 6 "Important Reversal Patterns" has many examples and details about the important "Head-and-shoulders" reversal pattern. Chapter 7 "Important Reversal Patterns - Continued" starts out with the "Head-and-Shoulders Bottom" reversal pattern. |
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