A Golden Cross is a chart pattern in which a relatively short-term moving average crosses above a long-term moving average. The short-term average is the faster one and the long-term average is the slower one. The crossover indicates that the bulls are in control and that prices will likely rise from here. This pattern can be used to identify buy signals for stocks, commodities, or any other asset class.Diagram of Golden Cross:-The first step in using this pattern is to identify the two averages involved. The most common averages used are the 50-day and 200-day Moving Averages (MA). Once you have identified these two averages, wait for them to cross each other. When they do, it's time to buy.
