Golden Cross
A golden cross is the point where a 50-period moving average crosses above a 200-period moving average; the opposite crossing is called a death cross.
A golden cross is the point where a 50-period moving average crosses above a 200-period moving average. The opposite, the 50 crossing below the 200, is called a death cross. Both are names for a moving average crossover, which describes a change that has already happened in price. Traders read it as a slow confirmation of a trend change.
Why does a golden cross happen late?
A golden cross happens late because the 200-period moving average reacts slowly, so price has usually been rising for a while before the 50 crosses it. A moving average is the mean price over a set number of periods. That delay is called lag. The moving averages lesson shows that lag on a chart.
Worked example: golden cross on EURUSD D1
| Day | 50-day average | 200-day average | Close |
|---|---|---|---|
| 1 | 1.0790 | 1.0800 | 1.0880 |
| 2 | 1.0805 | 1.0801 | 1.0900 |
On day 2 the 50-day average moves above the 200-day: a golden cross. The lowest close before it was 1.0750, so price was already 150 pips higher (1.0900 − 1.0750) when the cross appeared. At 0.10 lot, about $1 per pip, that is roughly $150 of movement before the cross. From 1.0900, a long position at 0.10 lot gains about $50 if price rises 50 pips and loses about $50 if it falls 50 pips.
How do traders read a golden cross?
Traders read a golden cross as a slow confirmation of a rise already under way, used in trending markets and checked against price itself. In sideways markets the two averages cross back and forth, so traders check for a trend first and keep the same settings for both lines.
- As confirmation, not a start. The crossing confirms a move already under way, which is why it is slow.
- In trends, not ranges. When price moves sideways, the averages cross back and forth, so traders check for a trend first; see trends and ranges.
- With fixed settings. Simple and exponential averages, and different periods, cross on different days, so use the same method and price for both lines.
- Alongside price. The cross is one description of trend; swing highs and lows show the rest.
How do you set up a golden cross in MetaTrader 5?
Add two Moving Average indicators to the chart, one with period 50 and one with period 200, using the same method and the same price. Add them from Insert, Indicators, Trend, or drag them from the Navigator, and pick simple or exponential for both. The Moving Average help page lists the four methods.
Hovering over a line shows its value, as described in the indicators help.
Is a golden cross a buy signal?
No: a golden cross reports that the last 50 periods averaged higher than the last 200, which describes the trend rather than calling a trade. Traders read it alongside price itself, especially its swing highs and lows, and size any position from its stop-loss distance first.
Sources
- MetaQuotes, MetaTrader 5 Help: Moving Average, accessed 19 October 2026: the moving average shows the mean price over a period; four types (simple, exponential, smoothed, linear weighted). https://www.metatrader5.com/en/terminal/help/indicators/trend_indicators/ma
- MetaQuotes, MetaTrader 5 Help: Indicators, accessed 19 October 2026: indicators are applied by dragging them from the Navigator window or with the Indicators command in the Insert menu; hovering over an indicator line shows its value. https://www.metatrader5.com/en/terminal/help/charts_analysis/indicators
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