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Moving averages, golden cross & death cross

Moving averages cut through the daily noise to show the trend — and when they cross, you get the golden cross and death cross signals. Here's what they mean.

By Nathan Wickham-Hurd · Founder, Oak Growth · Last reviewed June 2026

What a moving average is

A moving average is the average closing price over the last N days, recalculated each day. It smooths out the daily noise so you can see the underlying trend. The common ones are the 20-day (short term), 50-day (medium) and 200-day (long term).

The simplest read: when price is above its 200-day average, the long-term trend is up; below it, down.

The golden cross & death cross

The most-watched signals come from two averages crossing:

SignalWhat happensMeaning
Golden cross50-day crosses above 200-dayMomentum turning up (bullish)
Death cross50-day crosses below 200-dayMomentum turning down (bearish)

Oak Growth marks these on the chart with a dot at the exact crossover — a gold dot for a golden cross, a red dot for a death cross.

The honest caveat

Moving averages lag the price by design — they confirm a trend change after it's begun, they don't predict it. So a golden cross tells you momentum has turned, not that it's about to. Treat these as confirmation to use alongside the fundamentals, never as a standalone reason to buy or sell. See the dots in our method →

Put this into practice — open the screener →

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