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Beginner5 min read

BULLISH/BEARISH Signals

Understand the 9/21 MA crossover signals. When to trust them, when to wait, and how to filter out the noise.

What Are BULLISH/BEARISH Signals?

TouchGrass plots a signal label whenever the 9-period MA crosses the 21-period MA. This classic crossover system captures momentum shifts in a visual, easy-to-read format.

🟢 BULLISH Signal

Fast MA (9) crosses ABOVE Slow MA (21). Momentum shifting up.

🔴 BEARISH Signal

Fast MA (9) crosses BELOW Slow MA (21). Momentum shifting down.

📋 Signal Anatomy

🏷️

Label Position

BULLISH labels appear below the candle. BEARISH labels appear above. This keeps them out of the way of price action.

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Price Display

Each label shows the exact close price when the signal fired. Useful for setting entries and tracking performance.

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Alerts

You can set TradingView alerts for both signal types. Get notified on your phone when a new signal fires.

✅ When to Trust the Signal

  • Signal aligns with higher timeframe. BULLISH on 15m while 1H MA is also green = high conviction.
  • Signal near key level. BULLISH signal at PDL or VWAP = confluence support.
  • Signal after consolidation. Crossover after a range = potential breakout.
  • Volume confirmation. If volume spikes on the signal candle, more conviction.

⚠️ When to Be Cautious

  • Choppy/range market. Signals whipsaw when there's no clear trend. Wait for range break.
  • Counter to higher timeframe. BULLISH on 5m while 1H is red = likely to fail.
  • Signal at major resistance. BULLISH signal right at PDH without break = potential trap.
  • Low volume crossover. No volume = no conviction. Wait for confirmation.

🎯 Simple Signal Strategy

1

Wait for Signal

Don't anticipate. Let the BULLISH or BEARISH label appear.

2

Check Context

Is the higher timeframe aligned? Is price at a key level? Any divergence warnings?

3

Enter on Pullback

Best entries come on the first pullback to the MA after the signal. Don't chase.

4

Set Stop & Target

Stop below recent swing low (longs) or above swing high (shorts). Target next key level.

⚙️ Settings

SettingDefaultNotes
Show Bullish/Bearish SignalsOnToggle signal labels on/off
Fast MA Length9Lower = more signals, more noise
Slow MA Length21Higher = fewer signals, more reliable

📋 Quick Summary

  • BULLISH = Fast MA crosses above Slow MA
  • BEARISH = Fast MA crosses below Slow MA
  • Best signals align with higher timeframe and key levels
  • Avoid signals in choppy markets — wait for clear trends
  • Enter on pullbacks for better risk:reward

Put This Knowledge to Work

Get the TouchGrass indicator and start trading with these concepts today.