NISM Certifications · NISM-Series-XV: Research Analyst · Technical Analysis
Which of the following is the standard interpretation of a 'golden cross' in technical analysis?
A golden cross is when a shorter-term moving average, typically the 50-day, crosses above a longer-term one such as the 200-day. It is treated as a bullish signal. The opposite crossover, where the short average falls below the long one, is called a death cross.
- AA shorter-term moving average crossing above a longer-term moving average, such as the 50-day crossing above the 200-dayCorrect
- BA shorter-term moving average crossing below a longer-term moving average
- CThe price falling below its 200-day moving average
- DThe RSI moving above 70
Explanation
A golden cross occurs when a short-term average, commonly the 50-day, moves above a long-term average such as the 200-day, and is read as a bullish signal. The reverse crossing is called a death cross. The other options describe unrelated events.
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