Loading ...Golden Cross Identified In Gold
Market technicians use a multitude of moving averages in terms of’ the time cycles. These can vary from extremely short averages of three, seven or 10 minutes in length. Daily moving averages analyze long-term cycles and look at market momentum in terms of the big picture and long sustained moves.
In the case of looking for long sustained moves, the standards include a 50-day moving average, which indicates the intermediate or short-term trend of a stock or commodity. A 200-day moving average to indicate the long-term trend of a stock or commodity.
One of the more important technical patterns which market technicians are constantly looking for is when a cross occurs between two different length moving averages. When a longer-term moving average crosses below a shorter-term moving average it is called a “death cross”. This pattern is considered a bearish breakout which indicates that the market has been in a defined downtrend and has now broken with more momentum indicating a further decline in price.
When a shorter-term moving average crosses above a longer-term moving average it is labeled as a “golden cross”. This bullish breakout pattern can be created when any two different length moving averages have the shorter-term average crossing above the longer-term average. Most importantly this pattern indicates bullish market momentum.