When two averages meet
You met SMA and EMA in Module 3. A crossover happens when a faster MA crosses a slower MA:
- Golden cross (bullish context) — faster MA crosses above slower MA.
- Death cross (bearish context) — faster MA crosses below slower MA.
Common pairs: 9/21 EMA on intraday charts; 50/200 SMA on daily charts (widely watched — not magic).
Weakness: Crossovers lag price. In sideways markets they produce repeated false signals. Always check whether the pair is trending or ranging (Module 3).