To learn more about options rebates, see terms of the Options Rebate Program. Rebate rates range from $0.06-$0.18 and depend on the underlying security, whether the trade was placed via API, and your current and prior month’s options trading volume. In this phase, the short-term moving average crosses above the long-term moving average, signaling that upward momentum is gaining strength.

They are based on time periods of 15, 20, 30, 50, 100, and 200 days and are dependent on certain goals and objectives. In 2020, following the COVID-19-induced market crash, the S&P 500 experienced a golden cross in May. After a sharp sell-off in March, the market began to recover, and the 50-day moving average crossed above the 200-day moving average, marking the start of a significant rally. Investors who acted on this signal enjoyed strong gains as the market climbed over the following months. Technical stock chart analysts, investors may look for a golden cross, or a chart pattern suggesting an upcoming rally. In this guide you can get an understanding of what the golden cross pattern is, its stages and many more.

This pattern is widely regarded as a bullish signal, suggesting that a potential uptrend in the market is on the horizon. Options trading entails significant risk and is not appropriate for all investors. Please review the Characteristics and Risks of Standardized Options before considering any options strategy. Options investors can rapidly lose the value of their investment in a short period of time. Certain complex options strategies carry additional risk, including the potential for losses that exceed the original investment amount.See Fee Schedule for options trading fees.

Both of these are determined by the confirmation of a long-term trend from the occurrence of a short-term moving average crossing over a major long-term moving average. Because a golden cross indicates a bullish trend, many investors hail it as a strong buy sign. Investors who have shorted stocks, essentially betting that the price will drop, may interpret this pattern as a sign that it’s time to exit their positions because a bearish trend has ended. A golden cross is believed to confirm the reversal of a downward trend.

Example of a Golden Cross Trading Strategy

Therefore, traders must implement proper risk management strategies to protect their downside. Both a golden cross and a death cross confirm a long-term trend by indicating a short-term moving average crossing over a major long-term moving average. Not all Golden Crosses are created equal across different types of investments. Stocks typically show the most reliable performance with this pattern, particularly in large-cap names with strong institutional following.

Past performance does not guarantee future results, and investment values may rise or fall. A spot bitcoin ETP is not registered under the Investment Company Act of 1940 or regulated under the Commodity Exchange Act. It may perform differently than owning bitcoin and cmc markets review is highly speculative, with risks including volatility, illiquidity, manipulation, and total loss. Investors have no rights as bitcoin holders or to redemption in bitcoin. Bond investing carries risk including the risk that you lose some or all of your investment. Fractional Bonds carry additional risks and are only available on Public.

Death Cross

A death cross occurs when the short-term moving average of a security or the market drops below its long-term moving average. The golden cross is not limited to stocks; it can be applied to a range of assets, including cryptocurrencies, commodities, and even forex markets. The pattern works similarly across asset classes, though market-specific nuances should be considered.

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• Notice that the price range of the candlesticks made a significant jump when the downward trend bottomed out and turned into an uptrend.
• To trade intra-day golden cross breakouts, day traders commonly use smaller time frames, such as the five and 15-day moving averages.
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Chart patterns are popular among analysts and are used, along with other indicators, to anticipate changes in the stock market. Just as with the cup and handle pattern and the head and shoulders pattern, investors use the golden cross pattern to help them identify trends. In March 2025, Boeing’s stock exhibited a golden cross as its 50-day moving average crossed above the 200-day moving average. This technical indicator suggested a bullish momentum, coinciding with positive remarks from the company’s CFO and new aircraft orders.

• This crossover is often seen as a bullish signal, indicating that upward momentum is building and a strong uptrend could be on the horizon.
• As such, they indicate past performance so they are reactive rather than proactive.
• Investing in US Treasuries securities involves risks, including interest rate risk, credit risk, and market risk.
• The price bars on a stock chart don’t always make it obvious when a golden cross has occurred.
• Swing traders use longer time frames, such as five hours or 10 hours.

The Opposite Pattern: Death Cross

Notice that the price range of the candlesticks made a significant jump when the downward trend bottomed out and turned into an uptrend. Something likely occurred that changed investor and trader market sentiments at this time. While the golden cross is a powerful tool, traders often use it alongside other indicators to make well-informed decisions. Analysts also watch for the crossover occurring on lower time frame charts as confirmation of a strong, ongoing trend.

If the stock has not hit either the profit target or stop loss by the time limit, then we will close the trade manually at the opening bell seven calendar days after entry. The appearance of a golden cross indicates that the stock’s price has started trending upward in the last couple of months compared to where it had been on average in the year prior. They represent the two respective moving averages, and you can see where they cross over each other. The golden cross occurs when the golden “50” line crosses over the green “200” line. That image is a graphical icon that gives an idea visually of what a golden cross looks like according to the depiction of moving average lines.

We put all of the tools available to traders to the test and give you first-hand experience in stock trading you won’t find elsewhere. Our watch lists and alert signals are great for your trading education and learning experience. Investment advisory services for Treasury Accounts provided by Public Advisors and brokerage services provided by Public Investing. Public Advisors and Public Investing are affiliates, and both charge fees for their respective services. To learn more, see Public Advisors’ Form CRS, Firm Brochure, and Fee Schedule. Investing in US Treasuries securities involves risks, including interest rate risk, credit risk, and market risk.

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Yes, I know, that’s a lot to take in, but trust me, this info will be golden. To better understand the golden cross, let’s understand the key stages of its formation. To have any chance of success, you need all the information you can get.