IN PLAIN ENGLISH
When a fast line crosses above a slow line, it signals that short-term momentum is stronger than long-term momentum — often read as bullish. The opposite crossing is bearish. No signal is perfect; they work best alongside other indicators.
FULL DEFINITION
A technical event that occurs when a faster indicator (shorter period) crosses above or below a slower indicator (longer period), commonly used with moving averages to generate buy or sell signals.
EXAMPLE
EMA 12 crosses above EMA 26 (a 'golden cross' in short-term terms) — many traders treat this as a buy signal. EMA 12 crossing below EMA 26 is a 'death cross' and a potential sell signal.
Educational content only. It is not personal financial advice.