Can I screen the market for Golden Crosses?

Yes, the Golden Cross is one of the key flags in our ChartSignals tool. You can screen for the Golden Cross, along with its counterpart, the Death Cross. At a stock specific level, another way to do this is by setting an alert on this ratio at, say, > 1 assuming it is currently less than 1 (i.e. the 200D moving average is currently more than the 50D moving average).

When does a Golden Cross occur?

On a stock chart, the golden cross occurs when the 50-day MA rises sharply and crosses over the 200-day MA. Usually, a golden cross is associated with sharp upward price movement and can be used as a buy signal in the belief that a significant uptrend will follow. The reverse of this event is known as a Death Cross where the 50-day MA falls below the 200-day MA, a bearish signal. According to Joseph Granville, a famous technician from the 1960's (who set out 8 famous rules for trading the 200-day MA), a golden cross can only occur when both the 50-day and 200-day moving averages are rising. Others takes a less stringent view on this, so we've not assumed that both needs to be rising for the ChartSignals flag.

We discuss the interpretation of the Golden Cross in much more depth here.