Golden Cross & Death Cross -- Stock Tracker

Patterns

Golden Cross & Death Cross

A Golden Cross occurs when the 50-day MA crosses above the 200-day MA -- a major bullish signal. The opposite, the Death Cross, is a major bearish signal. These crossovers trigger large institutional buy/sell programs.

Golden Cross

Conditions: MA50 crosses above MA200.
Meaning: the medium-term trend is now stronger than the long-term trend.
What happens: pension funds and quant strategies that were avoiding the stock
start buying. This often creates a sustained rally.
Best after: a prolonged downtrend followed by base-building consolidation.

Death Cross

Conditions: MA50 crosses below MA200.
Meaning: the medium-term trend has weakened below the long-term trend.
What happens: institutional selling accelerates. Momentum traders short the stock.
Caveat: the death cross is a lagging signal -- stock may have already fallen 20%+ before the cross occurs.

False crossovers

In choppy markets, the MAs can cross back and forth, creating false signals. Always confirm with:
  - High volume on the breakout
  - RSI above 50 for golden cross (below 50 for death cross)
  - Positive sector and market context

✓ Quick Tips

Golden cross on SPY means the broad market is in a bull phase -- great tailwind.
Don't blindly buy a golden cross -- wait for a pullback to the MA50 for better entry.
Death crosses on individual stocks often come during earnings-driven breakdowns.
Index golden crosses (SPY, QQQ) are more reliable than individual stock ones.

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