What is Crossover?

A crossover is a point on the trading chart where the price and a technical indicator line intersect or when two indicators themselves cross.

Crossovers are used to predict potential changes in a trend.

Famous examples include the “Golden Cross” and “Death Cross,” which look for crossovers between 50 SMA and 200 SMA.

In most situations, the crossover signals that it’s time to buy or sell the underlying asset.

Traders use crossovers along with other indicators to track turning points and trend strength.