In moving average analysis, what indicates a buy signal?

A buy signal in moving average analysis is indicated when the shorter moving average crosses above the longer moving average. This event suggests a shift in market momentum where the recent price trends (captured by the shorter moving average) are gaining strength over the longer-term trends (represented by the longer moving average). When the shorter MA crosses above the longer MA, it implies that current prices are rising relative to previous prices, which can entice traders to enter a position expecting further price increases. This phenomenon is commonly referred to as a "golden cross," and many traders monitor such crossovers as a key signal for potential bullish trends in the market.