The Golden Cross and Death Cross - two signals that move billions of dollars.

Trading King
@tradingking
5 days ago

The Golden Cross and Death Cross - two signals that move billions of dollars.

GOLDEN CROSS
When the 50-day moving average crosses ABOVE the 200-day moving average.
Signal: Bullish. Institutional money is flowing in. The trend is shifting upward.
Historical accuracy: the S&P 500 has gained an average of 15% in the 12 months following a golden cross.

DEATH CROSS
When the 50-day moving average crosses BELOW the 200-day moving average.
Signal: Bearish. Smart money is leaving. The trend is shifting downward.
When this happens, risk management becomes survival management.

IMPORTANT:
- These are LAGGING indicators. By the time they appear, the move has already started.
- They work best on daily and weekly charts. On a 5-minute chart they are noise.
- Always confirm with volume. A cross on low volume is a whisper. A cross on high volume is a shout.

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