Crossover Rules

Crossover Rules trigger a signal at the exact moment one indicator crosses above or below another. Unlike Comparison Rules that check a static condition, Crossovers detect a shift in momentum — the precise instant when market forces change direction.

How Crossover Rules Work

A Crossover Rule compares two indicators (or an indicator and a value) and fires when they intersect:


Candle N-1:  Indicator A = 48,  Indicator B = 52   (A < B)
Candle N:    Indicator A = 53,  Indicator B = 51   (A > B)  ← CROSSOVER ABOVE triggered!

The signal only fires on the candle where the cross happens — not on every subsequent candle where A remains above B. This makes crossovers precise, one-time trigger events.

Crossover Directions

Direction	Meaning	Signal
Crosses Above	Indicator A moves from below B to above B	Typically bullish
Crosses Below	Indicator A moves from above B to below B	Typically bearish

Common Crossover Strategies

Moving Average Crossovers

The most popular crossover strategy — combining a fast and slow moving average:

Setup	Buy Signal	Sell Signal
Golden Cross	SMA(50) crosses above SMA(200)	SMA(50) crosses below SMA(200)
EMA Crossover	EMA(9) crosses above EMA(21)	EMA(9) crosses below EMA(21)
Fast Scalp	EMA(5) crosses above EMA(13)	EMA(5) crosses below EMA(13)

MACD Signal Line Crossover

Setup	Trigger
MACD Bullish	MACD Line crosses above Signal Line
MACD Bearish	MACD Line crosses below Signal Line

Stochastic Crossover

Setup	Trigger
Stochastic Bullish	%K crosses above %D (below 20 for oversold confirmation)
Stochastic Bearish	%K crosses below %D (above 80 for overbought confirmation)

Why Crossovers Beat Simple Comparisons

The Trading Edge

A common retail mistake is entering based on a static condition like RSI > 70. The problem? RSI can sit above 70 for days during strong trends, generating false entry signals on every candle.

A Crossover solves this by only firing at the moment of transition — catching the exact turning point instead of arriving late to the party. It confirms that momentum has actually shifted, not just that a threshold was momentarily breached.

Visual Example


           ┌─── Comparison "RSI > 70" is TRUE for this entire range ───┐
           │                                                            │
RSI  80 ─  │     ╭─────╮                                               │
     70 ─  │─ ─ ─│─ ─ ─│─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ ─ │
     60 ─  │   ╱ │     │ ╲                                             │
     50 ─ ╱   │  │     │   ╲                                           │
     40 ─     │  │     │                                                │
              │  │     │
              ▲  │     │
              │  │     │
      Crossover above 70 fires HERE ONLY (once)

Combining Crossovers with Other Rules

Crossovers work best when combined with other conditions for confluence:


Require ALL of:
  ├── EMA(9) crosses above EMA(21)        (Momentum shift — the trigger)
  ├── Close > SMA(200)                     (Long-term trend is bullish)
  └── ADX(14) > 25                         (Market is trending, not choppy)

This ensures you’re not just catching a crossover in a ranging, directionless market — you’re entering when both the trend and momentum confirm.

Configuration Steps

Select “Crossover” as the rule type
Choose Indicator A — The faster indicator (e.g., EMA 9)
Choose Indicator B — The slower indicator (e.g., EMA 21)
Select direction — “Crosses Above” or “Crosses Below”
Optionally override the timeframe for this rule

Next Steps

Learn how to confirm trend direction before entering:

→ Next: Trend Detection (Rising/Falling)