Understanding the 8 Period SMA Crossed Below 20 Period SMA 5 Minute Alert

These alerts report when one intraday SMA crosses another. The server is constantly monitoring for an 8 period SMA crossing a 20 period SMA.

When a shorter term SMA crossed below a longer term SMA, most people call that a bearish signal. We report that case in red.

The server watches for these alerts in the 2, 5, and 15 minute time frames. Notice the large red number in each icon. This is the number of minutes in the time frame.

The short term SMAs (8 vs. 20) are usually used to describe shorter trends.

Like all analytics based on intra-day candles, the exact values of these formulas can vary from one person to the next. However, SMAs are naturally very stable. If the alert server reports a crossing, it is safe to say that the two SMAs are touching or at least very close. This alert condition will be easier to see on a chart if the stock is moving quickly; the SMAs for slower moving stocks often seem to overlap for a long time on a chart.

The server always reports crossings at the end of one candle and the start of the next.

Benefits of the "8 Period SMA Crossed Below 20 Period SMA" alert include:

Trend Reversal Identification: It can serve as an early indication of a potential reversal in the trend, allowing traders to identify bearish conditions in the market.

Early Exit Point: Traders holding long positions may use this alert as a signal to exit or manage their positions before a more extended downtrend develops.

Confirmation of Bearish Momentum: The crossover of the shorter-term SMA below the longer-term SMA may confirm bearish momentum in the market.

Objective Trading Signal: Like its bullish counterpart, this alert provides an objective signal based on specific criteria, reducing the impact of emotions in trading decisions.

Adaptable to Various Timeframes: This type of alert is applicable across different timeframes, making it useful for traders with different trading styles and time horizons.

Default Settings

By default, this alert is triggered when the 8 period SMA crosses below the 20 period SMA in a 5 minute timeframe. To align with each alert, it's essential to utilize the corresponding time frame on the chart. For instance, this 80/20 crossover alert is visualized on the 5-minute candlestick chart.

Description Column

The description column of this scan will display "8 Period SMA Crossed Below 20 Period SMA (5 Minute)", providing you with a clear indication of the specific alert that has been triggered.