Golden Cross + Volume
The Golden Cross is one of the most widely watched long-term trend signals: when a stock's 50-day moving average crosses above its 200-day moving average, it marks the start of a durable up…
The Golden Cross is one of the most widely watched long-term trend signals: when a stock's 50-day moving average crosses above its 200-day moving average, it marks the start of a durable uptrend (the mirror event, the 50 crossing back below the 200, is the "death cross"). This variant adds a volume-confirmation filter so the cross only triggers an entry when it happens on above-average volume — real participation behind the move, not a drift across the line on a quiet day.
It is an easy, long-term / trending, daily-timeframe strategy. By design it produces few signals: a 50/200 cross is a big, slow event that may happen only once or twice a year on a given name.
How it trades
| Ingredient | Meaning |
|---|---|
| CROSSOVER(SMA(50), SMA(200)) | The 50-day SMA crossing above the 200-day SMA this candle (the golden cross) |
| CROSSUNDER(SMA(50), SMA(200)) | The 50-day SMA crossing below the 200-day SMA (the death cross) |
| Volume / AVGVOLUME(20) | Volume-confirmation filter — the cross must occur on above-average volume |
Buy (golden cross, volume-confirmed):
CROSSOVER(SMA(50), SMA(200)) AND Volume > AVGVOLUME(20)
Sell (death cross):
CROSSUNDER(SMA(50), SMA(200))
CROSSOVER/CROSSUNDER are events, not levels: a crossover is true only on the single candle where the fast SMA moves from at-or-below the slow SMA to strictly above it (and the mirror for crossunder). Concretely, at candle i:
When it works best
A classic institutional, long-term-investing signal. It works best on names that sustain multi-year secular trends, where a golden cross genuinely marks the start of a durable up-leg. Its weakness is the flip side of its strength: it is slow and produces few trades, and in a choppy, range-bound market the 50/200 can cross back and forth, producing late or whipsawed signals even with the volume filter.
Backtest this strategy yourself
Build these rules on the Free plan, adjust them, and see how they would have traded.