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The Golden Сross

The Golden Cross is a pattern that appears on the chart when the 50-day moving average crosses above the 200-day moving average and both lines are rising. A moving average with a shorter period is called "fast" and a moving average with a longer period is called "slow".

The Golden Cross indicates that an uptrend has formed on the chart.

Similar to moving averages with 50 and 200 days, you can use two moving averages of different periods. For example, a trader has added two SMAs to the chart: a "fast" one with a period of 5 and a "slow" one with a period of 15. If the “fast” SMA crosses the “slow” line going upwards and both moving averages rise, the asset price is likely to rise as well. You can then make an Up trade.