The MA Crossover rule compares a fast EMA to a slow EMA. It is a classic trend-following signal.
For the indicator formula, see EMA — Formula.
Signals
| Condition | Signal |
|---|---|
| Short EMA > long EMA | Buy |
| Short EMA < long EMA | Sell |
Default parameters
| Parameter | Default |
|---|---|
| shortMA | 5 |
| longMA | 100 |
Both averages are EMA (see EMA glossary).
Where to use it
Works in entry, increase, reversal, exit, and as a directional filter. Classified as a trend rule in regime summaries.
Tips
- Short/long periods that are too close increase whipsaws in sideways markets.
- Pair with ADX or UTC time window filters to avoid low-trend chop.
- Use invert for contrarian crossover logic.
Example
Defaults: shortMA 5, longMA 100 on BTC/USDT 1h. Bar 1: EMA(5) below EMA(100) → sell bias. Bar 2: EMA(5) crosses above EMA(100) → buy. In all agree entry with no other rules, that crossover alone can open a long.