The Serrucho phenomenon or Whipsaw

When a fast EMA like the 9 crosses above a slow EMA like the 50, it gives us indications of a Golden Cross.

When the fast EMA crosses below, it indicates a possible Death Cross.

When one of these movements almost immediately follows the other, as you can see in the image of $YALA , we are witnessing a serrucho.

It is vital to understand that Exponential Moving Averages (EMAs) are lagging indicators. This means they are calculated based on past prices to try to predict the future.

It is not an Exact Science, it is Mass Psychology.

EMAs do not move the price; the price moves the EMAs.

It is important to keep in mind that the Whipsaw is something that happens a lot in sideways markets or when there is short-term manipulation to trap those who trade solely based on indicators.

$YALA