Understanding the Golden Cross A Simple But Powerful Strategy

The Golden Cross Strategy is a popular technical analysis trading method that uses the crossover of the 50-day and 200-day moving averages. When the 50-day crosses above the 200-day moving average, it creates a Golden Cross signal. Many traders consider this crossover a bullish sign, as it indicates the short-term moving average is trending higher and has broken above the longer-term moving average, which may signal the beginning of a long-term uptrend.

The Golden Cross is often used by "buy and hold" traders looking for long-term investment opportunities. These traders first use the Golden Cross signal to confirm a bullish market trend. Then, after the Golden Cross signal is generated, traders will purchase stocks (or other assets) and hold them for an extended period while hoping to capitalize on long-term market trends.

Like any trading strategy, the Golden Cross has its limitations and may not be appropriate for all traders or market conditions. Additionally, using confirmation signals such as new monthly highs can help improve the timing of entries.

Join John Rowland, Barchart's Senior Market Strategist, as he explains the core concept of the Golden Cross and walks you through how to use various additional technical analysis tools to enhance timing and filter out whipsaw price movements that are common with trend-following trading systems. John will also demonstrate some of the valuable tools and features Barchart offers to manage this simple but powerful trend-following system.

In this webinar, you will learn about:

- Rules of the Golden Cross System
- Trend confirming technical analysis
- Filtering strategies to enhance entries
- Risk Management Techniques
- Barchart Features & Tools that can help manage trend-following systems