Tuesday, May 6, 2014

Technical Analysis: Death Cross & Golden Cross

I copied and pasted this straight from http://www.investopedia.com/terms/d/deathcross.asp

Definition of 'Death Cross'


A crossover resulting from a security's long-term moving average breaking above its short-term moving average or support level.



Death Cross

Investopedia explains 'Death Cross'


As long-term indicators carry more weight, this trend indicates a bear market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new resistance level in the rising market.

Golden Cross



 

 

Definition of 'Golden Cross'


A crossover involving a security's short-term moving average (such as 15-day moving average) breaking above its long-term moving average (such as 50-day moving average) or resistance level.



Golden Cross

Investopedia explains 'Golden Cross'


As long-term indicators carry more weight, the Golden Cross indicates a bull market on the horizon and is reinforced by high trading volumes. Additionally, the long-term moving average becomes the new support level in the rising market.

Technicians might see this cross as a sign that the market has turned in favor of the stock.
 

 

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