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Knowledge center · Technical analysis

Golden / death cross

The 50-day average crossing above (golden) or below (death) the 200-day — the most-watched long-term trend change signal.

Formula

Cross of SMA(50) through SMA(200).

Interpretation

A golden cross says the medium-term trend has overtaken the long-term one — historically associated with the early phase of durable uptrends. A death cross is the mirror image.

What good looks like

A recent golden cross with price holding above both averages.

What bad looks like

A recent death cross, especially with volume confirming the decline.

Typical range

Binary event; the engine reports one only when it printed within the last 60 trading days.

Limitations

Extremely lagging: by the time a cross prints, a large part of the move has often happened. Frequent false signals in range-bound markets.

How OmniSignal uses it

It is the single most-followed trend signal in markets — when it prints, it moves positioning whether or not one believes in it.

Where it enters the score

Not a scoring input — reported for trend context only.

References

Brock, Lakonishok & LeBaron (1992), Journal of Finance

Related concepts

Moving averages (20/50/200)MACD (12, 26, 9)RSI (14)ADX (14)ATR (14)