Holt Crossover

The Holt Crossover is a technical analysis tool used in trading to identify potential trend changes. It involves two moving averages: a short-term average that reacts quickly to price changes, and a long-term average that responds more slowly. When the short-term moving average crosses above the long-term average, it signals a possible upward trend (a buy signal). Conversely, when it crosses below, it indicates a potential downward trend (a sell signal). This crossover helps traders recognize shifts in market momentum and make informed decisions about entering or exiting trades.