Golden Cross Definition. A Golden Cross is a name for a familiar technical analysis pattern in which two moving averages intersect, suggesting that the reference currency will move in the same direction. As presented in the chart below, the point of crossover when the shorter moving average crosses upwardly past the longer moving average is the Golden Cross. Forex traders generally view it as a bullish signal by the market. The longer moving average then becomes the support level in the new rising market. For stocks, increasing volume at this crossover point is confirmation of an upward breakout move. The 50/100 day MAs are typical for stocks. Foreign currencies MAs would depend on the time horizons chosen by the forex trader and may be in hours or days.

Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.