5 Benefits of Using Golden Cross Trading

Krutika Adani

What Is the Golden Cross?

It is a bullish crossover in which the short-term moving average (20 to 50 DMA) crosses and overtakes the long-term moving average.

Increases Accuracy

Since the indicator considers two well-established price averages, it is generally more accurate than other singular moving average-based indicators.

Insights Based on Data

The Golden Cross uses the average of several past closing candles (from 20 to 200), so its insights are more reliable.

Widely Used Indicator

The indicator is a commonly used indicator to identify changes in market trends.

Stops From Catching Falling Knives

The indicator has successfully prevented users from catching false breakouts, as most traders only initiate their positions when the indicator shows sufficient divergence.

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