Construction, interpretation, lag, and limitations of named crossovers.
| Concept | Explanation | |---|---| | Golden cross | Commonly, the 50-day moving average crossing above the 200-day average. | | Death cross | Commonly, the 50-day moving average crossing below the 200-day average. | | Silver cross | Often defined as the 50-day average crossing above the 100-day average; definitions vary. | | Strengthening evidence | Price above both averages, rising slopes, broad participation, and supportive volume. | | Weakening evidence | Flat averages, low volume, range-bound price, or a quick recross. |
Key idea: Named crossovers are descriptive conventions, not universal trading laws. Always disclose the exact periods and averaging method used.