START USING IT

The main features of CrossX indicator (version 4) are:

  1. Buy/Sell signals with candlestick coloring
  2. Top/Bottom Reversal signals
  3. Divergence signals
  4. Swing Points
  5. Cloud

1. Buy/Sell signals with candlestick coloring

Buy signal (buy tag and green candle) appear when market is in a new uptrend. Represents an entry/buy in.

Sell signal (sell tag and red candle) appear when market is in a downtrend, reversal or sideways. Represents an exit/sell.

Both buy and sell signals are not appear in current candle until the candle is closed. Once the candle is closed with a signal then the signal is confirmed immediately.

Note: The buy/sell signals are not changed from the previous version. If you notice signals are different from the previous version. Please check chart’s timeframe and indicator timeframe.

Green candles represent an uptrend has either just begun, or is in progress. When the candles turn from red to green, represent you are in an uptrend so ride the trend from start to finish, ignoring fluctuations.

Red candles represent a downtrend has either just begun, or is in progress. When the candles turn from green to red, represent you are in a downtrend or sideways, help you stay in short position and should not rush into buying.

2. Top/Bottom Reversal signals

Top Reversal (TR):  Shows potential tops after a bullish move is near exhaustion. If a “TR” signal appears, indicate a potential reversal from an uptrend to a downtrend. If you have a buy/long position, you should consider taking some profits here.

Bottom Reversal (BR):  Shows potential bottom after a bearish move is near exhaustion. If a “BR” signal appears, indicate a potential reversal from a downtrend to an uptrend. If you have a sell/short position, you should consider taking some profits here.

Both TR and BR signals are not appear in current candle until the candle is closed. Once the candle is closed with a signal then the signal is confirmed immediately.

3. Divergence signals

Divergence is a concept in technical analysis that describes when an asset’s price is moving in the opposite direction of oscillators. Divergences are used by traders in an attempt to determine if a market trend is getting weaker, which may lead to a consolidation period or a trend reversal.

Regular bullish Divergence (R Bull Div) and Hidden bullish Divergence (H Bull Div) : This situation demonstrates that bears are losing power, and that bulls are ready to control the market again, often a bullish divergence marks the end of a downtrend. May lead to a consolidation period or a trend reversal.

Regular Bearish Divergence (R Bear Div) and Hidden Bearish Divergence (H Bear Div) : This situation demonstrates that bulls are losing power, and that bears are ready to control the market again, often a bearish divergence marks the end of an uptrend. May lead to a consolidation period or a trend reversal.

4. Swing points

Most traders have heard about Dow Theory and higher highs and lower lows. Highs and lows are major reference points for traders.

1. Higher highs (HH) + higher lows (HL) define an upward trend.

2. Lower highs (LH) +lower lows (LL) define a downward trend.

Many traders pay attention to the progress of these points. If the market price succeeds in surpassing previous swing high, the market is bullish. Vice versa, if the market price reverses below previous swing low, the market is bearish. That same principle applies to all time frames.

A sideways market, there is not always a clear sequence of higher or lower highs and lows. In these cases we speak of sideways phases. These phases occur in two distinct types:

Range contraction: Lower highs (LH) + higher lows (HL). This narrows the trading range which is a sign of decreasing volatility.

Range extension: Higher highs (HH) + lower lows (LL). This expands the trading range expands which is a sign of increasing volatility.

5. Cloud

The cloud will help you identify a bull market and a bear market. If the price is above the gray cloud and the blue cloud indicate it is a bull market. If the price is below the gray cloud and the blue cloud indicate it is a bear market. If the price is between the gray cloud and the blue cloud indicate it is a neutral market

The cloud also gives traders support and resistance levels. If the cloud is THICK = STRONG support/resistance, If the cloud is THIN = WEAK support/resistance.

It also behaves like mean reversion. Assumption that an asset’s price will tend to converge to the average price (the cloud) over time. When the current market price is less than the cloud, the market price is expected to rise to the cloud. When the current market price is above the cloud, the market price is expected to fall to the cloud.