Glossary

Crossover

The moment one line on a chart passes through another, for example a fast moving average rising above a slow one.

In plain English

Many trading rules are built on lines crossing: two moving averages, a price and an average, or two indicators. The crossing point is treated as the moment something changed.

Uncle Gary explains

Two lines crossing on a chart is like two cars meeting at a roundabout. It happens all day long, and only occasionally does it mean anything.

Why it matters for your money

Crossovers are easy to see on a chart, which makes them popular. Easy to see is not the same as useful.

Where we tested it

Related terms

All glossary terms. Educational content, not financial advice.