2 min
Aug 31, 2024
Indicators
The RSI Crossover Indicator
The RSI Crossover Indicator
The RSI indicator is a fundamental tool in any trader's toolkit. It helps to understand the strength of a trend over a given period. The RSI Crossover indicator, on the other hand, allows you to calculate two RSIs using the same method but over different periods, enabling you to assess whether the strength of the prevailing trend is increasing or decreasing.
Lucas Inglese
Lucas Inglese
Trading Instructor
The RSI Crossover Block Configuration
On BullTrading, you have several options to configure each block uniquely. In this block, you can set the time unit, periods used, and more.
Time Unit
Since BullTrading allows for multi-timeframe strategies, you can select the time period for calculating this indicator. There are two options:
Default: If set to Default, the time unit will vary based on the timeframe used in the backtest.
15m, 30m, 1d, etc.: Choosing a specific time unit means this setting will apply regardless of the time unit used for backtesting your strategy.
TIPS: If you’re a beginner, it’s recommended to leave the time unit on Default.
Period Slow RSI & Period Fast RSI
This indicator is based on the crossover of two RSIs with different periods, and here you will define those periods. "Period Slow RSI" is the parameter that defines the longer period, while "Period Fast RSI" defines the shorter period.
Signal Type
This parameter has two options: CrossOver and Position. Here’s the difference:
CrossOver: If you select CrossOver as the signal type, this block will validate only when the Fast RSI line crosses above or below the Slow RSI line.
Position: With this option, the block is validated as long as you are in the selected Trigger Type (Bearish or Bullish).
TIPS: The CrossOver parameter is more restrictive, making it useful when combining only one or two indicators. However, using too many blocks with CrossOver will significantly reduce the number of trades in your strategy, as it requires, for example, a crossover between the two MAs + a crossover at the RSI 70 threshold + a crossover in the Vortex indicator.
So, if you’re a beginner, avoid setting more than one or two blocks to CrossOver when combining multiple indicator blocks.
Trigger Type
This parameter has two options: Bullish or Bearish. Here’s the difference:
Bullish: If the trigger type is set to Bullish, the block is validated if the Fast RSI line is above the Slow RSI line.
Bearish: If the trigger type is set to Bearish, the block is validated if the Fast RSI line is below the Slow RSI line.
The RSI Crossover Block Configuration
On BullTrading, you have several options to configure each block uniquely. In this block, you can set the time unit, periods used, and more.
Time Unit
Since BullTrading allows for multi-timeframe strategies, you can select the time period for calculating this indicator. There are two options:
Default: If set to Default, the time unit will vary based on the timeframe used in the backtest.
15m, 30m, 1d, etc.: Choosing a specific time unit means this setting will apply regardless of the time unit used for backtesting your strategy.
TIPS: If you’re a beginner, it’s recommended to leave the time unit on Default.
Period Slow RSI & Period Fast RSI
This indicator is based on the crossover of two RSIs with different periods, and here you will define those periods. "Period Slow RSI" is the parameter that defines the longer period, while "Period Fast RSI" defines the shorter period.
Signal Type
This parameter has two options: CrossOver and Position. Here’s the difference:
CrossOver: If you select CrossOver as the signal type, this block will validate only when the Fast RSI line crosses above or below the Slow RSI line.
Position: With this option, the block is validated as long as you are in the selected Trigger Type (Bearish or Bullish).
TIPS: The CrossOver parameter is more restrictive, making it useful when combining only one or two indicators. However, using too many blocks with CrossOver will significantly reduce the number of trades in your strategy, as it requires, for example, a crossover between the two MAs + a crossover at the RSI 70 threshold + a crossover in the Vortex indicator.
So, if you’re a beginner, avoid setting more than one or two blocks to CrossOver when combining multiple indicator blocks.
Trigger Type
This parameter has two options: Bullish or Bearish. Here’s the difference:
Bullish: If the trigger type is set to Bullish, the block is validated if the Fast RSI line is above the Slow RSI line.
Bearish: If the trigger type is set to Bearish, the block is validated if the Fast RSI line is below the Slow RSI line.
The RSI Crossover Block Configuration
On BullTrading, you have several options to configure each block uniquely. In this block, you can set the time unit, periods used, and more.
Time Unit
Since BullTrading allows for multi-timeframe strategies, you can select the time period for calculating this indicator. There are two options:
Default: If set to Default, the time unit will vary based on the timeframe used in the backtest.
15m, 30m, 1d, etc.: Choosing a specific time unit means this setting will apply regardless of the time unit used for backtesting your strategy.
TIPS: If you’re a beginner, it’s recommended to leave the time unit on Default.
Period Slow RSI & Period Fast RSI
This indicator is based on the crossover of two RSIs with different periods, and here you will define those periods. "Period Slow RSI" is the parameter that defines the longer period, while "Period Fast RSI" defines the shorter period.
Signal Type
This parameter has two options: CrossOver and Position. Here’s the difference:
CrossOver: If you select CrossOver as the signal type, this block will validate only when the Fast RSI line crosses above or below the Slow RSI line.
Position: With this option, the block is validated as long as you are in the selected Trigger Type (Bearish or Bullish).
TIPS: The CrossOver parameter is more restrictive, making it useful when combining only one or two indicators. However, using too many blocks with CrossOver will significantly reduce the number of trades in your strategy, as it requires, for example, a crossover between the two MAs + a crossover at the RSI 70 threshold + a crossover in the Vortex indicator.
So, if you’re a beginner, avoid setting more than one or two blocks to CrossOver when combining multiple indicator blocks.
Trigger Type
This parameter has two options: Bullish or Bearish. Here’s the difference:
Bullish: If the trigger type is set to Bullish, the block is validated if the Fast RSI line is above the Slow RSI line.
Bearish: If the trigger type is set to Bearish, the block is validated if the Fast RSI line is below the Slow RSI line.
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