When creating a strategy, it's crucial to understand the operators and what will trigger them. While "Is Above / Is Below" and "Crosses Above / Crosses Below" may seem similar, they function differently. Here's an overview to help you grasp the distinctions and make the most of these operators in your strategies.
Is Above / Is Below
These conditions describe a scenario where one value is either higher or lower than another value. The key point here is that this condition does not account for how much higher or lower one value is compared to the other. It simply checks if one value is above or below another.
For example: If the price of AAPL is above the Moving Average...
In the example above, the condition remains valid as long as the price of AAPL is above its moving average, regardless of how far or for how long the price stays above the moving average.
You can also incorporate the delta (the difference) between two terms by combining "Is Above" or "Is Below" with the "By" operator.
For example: If the price of AAPL is above its moving average by 2%...
If you want your strategy to trigger precisely when one value becomes higher or lower than another, the "Crosses Above" or "Crosses Below" condition is what you need.
Crosses Above / Crosses Below
These conditions describe the exact moment when one term crosses above or below another term. Since they focus on the precise moment of change, these conditions are ideal for strategies based on technical analysis.
For example: If the price of EUR/USD crosses above the Moving Average...
The condition will become valid only in the moment of change (marked with blue arrows)
A Crosses Above / Crosses Below condition becomes valid the moment its criteria are met, and remains valid only until the values change—based on the time frame referenced. If the condition uses daily values, it updates once per day; if it uses hourly values, it updates once per hour, and so on.
Example:
If AAPL 1-15m bar high crosses above AAPL last day close...
In this case, the value updates every 15 minutes, as each new 15m candle closes.
You can also refine this condition by using the keyword "by" to specify a delta (difference) between the two terms, combining it with Crosses Above or Crosses Below.
Example:
If the price of AAPL crosses above the previous day’s high by 2%...
The follow-up action will only trigger if the price of AAPL rises more than 2% above the previous day’s high. If the increase is less than 2%, the condition will not be met, and the strategy won't trigger.
Synonyms for “Is Above” / “Is Below”:
/ < | higher than / lower than | over / under | greater than / less than
Synonyms for “Crosses Above” / “Crosses Below”:
is crossing above / is crossing below | jumps above / falls below | breaks above / breaks below | goes above / goes below | moves above / moves below | cuts above / cuts below
Note: All screenshots and examples are for technical demonstration purposes only. They should not be considered as recommendations for any specific trading strategy, nor do they constitute any form of advice. Please click here for further explanation