A golden cross is a technical analysis pattern that occurs when a shorter-term moving average crosses above a longer-term moving average on a price chart. It is typically considered a bullish signal by traders and analysts.

The moving averages commonly used in a golden cross are the 50-day and 200-day moving averages, although variations can be applied depending on the timeframe and trading strategy. When the shorter-term moving average (e.g., the 50-day moving average) crosses above the longer-term moving average (e.g., the 200-day moving average), it forms a golden cross.

The golden cross is often interpreted as a signal of a potential upward trend reversal or an indication of strengthening bullish momentum. It suggests that the recent price action is becoming more favorable for buyers and that the potential for higher prices in the future may be increasing.

Traders and investors often use the golden cross as a confirmation to enter or add to long positions in a security or market. It is seen as a signal to buy, as the crossover suggests a shift in market sentiment from bearish to bullish.

While the golden cross can be a useful tool for identifying potential bullish trends, it is important to consider other factors and use additional technical analysis indicators to validate the signal and assess the overall market conditions before making trading decisions.