Crossover

  

Categories: Charts, Trading

In order to try and forecast whether a stock price will go up or down, analysts look for a point on a stock chart called a crossover.

A crossover is the point at which a security and an indicator intersect, and is usually used as a signal to buy or sell. Indicators can include moving averages, relative strength index, and on-balance volume.

Related or Semi-related Video

Finance: What are Triple Bottom and Trip...2 Views

00:00

Finance allah shmoop what are triple bottom and triple tops

00:07

All right well this is a triple top It wants

00:10

to break out The stock was trading down here around

00:12

five bucks a share in and glam o it went

00:14

up And yes blam o is the name of the

00:16

company's new anti constipation drug a huge hit So it

00:20

went up up up to hear it Fifteen bucks tripled

00:22

in value in just a few months but then sober

00:24

reality began to hit the investing community There simply wasn't

00:28

enough constipation to go around So the stock began to

00:31

flag and traded down teo here this level at twelve

00:34

bucks But then glam o again released big news a

00:37

partnership with manish of its grandma tsa and the american

00:41

cheese manufacturing association So the stock raced again to fifteen

00:45

But no there just wasn't enough enthusiasm from buyers pay

00:48

more than fifteen bucks a share for it So you

00:50

know that's all despite this newly created a kind of

00:53

market So the stock sank back to twelve only to

00:56

then have investment interest from procter and gamble owners of

00:59

sharman who bought five percent of the company at thirteen

01:02

fifty ish year and left a lot of investors thinking

01:04

surveyed by the whole company complete with its product line

01:07

of anti constipation drinks Waymo glam Oh thankyou memo But

01:11

alas the investment community would not pay up past fifteen

01:14

to share and the stock flagged again sinking back to

01:17

twelve having created a triple top and needing something to

01:20

make things really start you know going So yeah that's

01:23

a triple top What about a triple bottom Well a

01:25

triple bottom and basically just the same thing in reverse

01:27

like this keeps hitting a low point looking like it's

01:30

going tio bottom out further But then it recovers on

01:33

the subject of bottoming out well glam o is now

01:36

available in new chewable gummy form Yeah glam o so

01:40

you never have to worry when your bottoms out

Up Next

Finance: What is a Chartist?
26 Views

What is a Chartist? A chartist is a trader and/or analyst who relies on technical analysis and charts in order to make decisions for trading the ma...

Find other enlightening terms in Shmoop Finance Genius Bar(f)