Golden Cross vs. Death Cross - Differences

Technical analysis involves the use of statistical analysis to make trading decisions. Technical analysts use a ton of data, often in the form of charts, to analyze stocks and markets. 

• A golden cross indicates a long-term bull market going forward.
• A death cross signals a long-term bear market. 

Both refer to the solid confirmation of a long-term trend by the occurrence of a short-term moving average crossing over a major long-term moving average.

The golden cross occurs when a short-term moving average crosses over a major long-term moving average to the upside and is interpreted by analysts and traders as signaling a definitive upward turn in a market.

There are three stages to a golden cross:

• A downtrend that eventually ends as selling is depleted
• A second stage where the shorter moving average crosses up through the longer moving average
• The continuing uptrend, hopefully leading to higher prices.