MA Cross (Moving Average Cross)
What it shows
A long moving-average cross (e.g. 50/200) shows the structural trend direction: a golden cross (bullish) or death cross (bearish).
How to read it
Long MA crosses are lagging but confirm the trend structure over the medium/long horizon. The strongest picture is when they agree with MVRV and price momentum.
Parameters
- Long MA alignment
- Shorter MA above the longer one = bullish structure; below = bearish.
- Positive reading: Golden cross (50 above 200): historically confirmation of a structural uptrend.
- Negative reading: Death cross (50 below 200): historically confirmation of a structural downtrend.
- Neutral reading: Averages intertwined: an ambiguous trend structure.
Example
MA50 crosses above MA200 (Golden Cross). Historically this is a confirmation of a long-term trend shift to bullish. A Death Cross (MA50 below MA200) historically signaled a bearish phase; price tangled with the averages is a sideways trend.