MACross Overview

Moving Average Crossovers measure the difference between a fast and slow moving average of the same type. When the fast MA crosses above the slow MA (bullish_cross), an uptrend is signaled. When it crosses below (bearish_cross), a downtrend.

Reversion provides 11 crossover variants, each using a different MA type:

Crossover	Code	MA Type
SMA Crossover	SMACross	SMA
EMA Crossover	EMACross	EMA
HMA Crossover	HMACross	HMA
LMA Crossover	LMACross	LMA
RMA Crossover	RMACross	RMA
MGA Crossover	MGACross	MGA (McGinley)
LSA Crossover	LSACross	LSA (Least Squares)
VWSMA Crossover	VWSMACross	VWSMA
VWEMA Crossover	VWEMACross	VWEMA
VWLMA Crossover	VWLMACross	VWLMA
VWRMA Crossover	VWRMACross	VWRMA

All crossover indicators share the same signal names (bullish_cross / bearish_cross) and parameter structure (Fast Period, Slow Period). The key difference is the underlying MA calculation, which affects responsiveness and smoothness.

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How Moving Average Crossovers Works

Core Concept

1. Calculate Fast MA: Apply the MA type to price with the fast period
2. Calculate Slow MA: Apply the same MA type with the slow period
3. Compute Difference: Fast MA - Slow MA
4. Detect Crossover: When difference crosses zero, a crossover signal fires
5. bullish_cross: Fast > Slow (difference > 0) — uptrend signal
6. bearish_cross: Fast < Slow (difference < 0) — downtrend signal

Key Characteristics:

• 11 Variants = Same concept, different MA types for different response characteristics
• Separate Pane = Displayed as an oscillator showing the fast-slow difference
• Zero-Line Crosses = Crossovers occur when the difference crosses zero
• Lag Varies by Type = HMACross responds fastest, RMACross smoothest/slowest

Visual Interpretation

Crossover Behavior:

• Positive values (bullish_cross) = fast MA above slow MA = uptrend
• Negative values (bearish_cross) = fast MA below slow MA = downtrend
• Zero-line crossings are the signal moments
• The magnitude shows how far apart the MAs are

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Trading Signals Available on Reversion

These are the signal names you select when configuring MACross in the algorithm builder or via the MCP agent:

Signal	Triggers When	Typical Use
bullish_cross	Fast MA crosses above slow MA (difference > 0)	Bullish crossover — uptrend starting
bearish_cross	Fast MA crosses below slow MA (difference < 0)	Bearish crossover — downtrend starting

Display: Separate pane (difference oscillator)

Category: Trend

Threshold range: Unbounded (centered on zero)

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Key Characteristics

Strengths

What Moving Average Crossovers Does Well:

• Clear Trend Direction: Unambiguous bullish/bearish signals
• 11 Variants: Choose the MA type that best suits your asset and timeframe
• Simple to Understand: Fast MA above slow = bullish, below = bearish
• VW Variants: Volume-weighted versions add conviction

Limitations

What to Watch Out For:

• Inherently Lagging: All crossovers signal after the move starts
• Whipsaws in Ranges: Frequent false crossovers during consolidation
• Period Sensitivity: Wrong period combination produces too many or too few signals

Best Use Cases

When to Use Moving Average Crossovers:

• Trend Following: Use bullish_cross for long entries, bearish_cross for shorts
• Trend Filter: Use crossover state (not the cross event) as a trend direction filter
• Multi-MA Confirmation: Multiple crossover types agreeing strengthens the signal

When NOT to Use Moving Average Crossovers:

• Ranging Markets: Constant whipsaws without trend
• Standalone System: Combine with momentum for entry timing

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Note

Pro Tip: The key to profitable crossover trading is choosing the right MA type for your asset. Back-test all 11 variants with the same periods to find which produces the best signals. Generally: HMACross for fast-moving crypto, EMACross for stocks, SMACross for slow/stable assets. Always add ADX > 25 filter to avoid ranging-market whipsaws. For volume-confirmed signals, use VW variants (VWEMACross, VWSMACross) on assets with reliable volume data.