Details

Crossovers occur when the value of a security intersects with a stock indicator, such as a 20- or 50-day moving average (MA). Crossovers often indicate a reversal or start of a bullish or bearish trend. A security-indicator crossover may indicate a short-term fluctuation such as when the security crosses above the MA, triggering a buy signal, or when it crosses below the MA, triggering a sell signal. Similarly, an indicator-indicator crossover may indicate a long-term trend, so that the 20-day MA crossing above the 50-day MA may indicate a possible upward trend and a buy signal, while the 20-day MA crossing below the 50-day MA may indicate a possible downward trend and a sell signal.