All patterns

RSI 50-cross

Indicator · Beginner · Daily bars · RSI was created by J. Welles Wilder

Enter a buy when RSI(14) crosses above 50; the single most robust indicator rule in the stack.

Forget overbought and oversold — this is about who controls the market right now. RSI crossing 50 is the line between buyers and sellers.

How to trade it (bullish)

  1. Setup: Watch RSI(14) relative to the 50 line — the equilibrium where gains and losses balance out.
  2. Entry: Buy when RSI crosses above 50 (was at or below, now above). Enter at the cross bar's close or next open.
  3. Stop and exit: Stop below the swing low before the cross. Exit when RSI crosses back below 50.

How to trade it (bearish)

  1. Setup: Watch RSI(14) relative to the 50 line — above 50 means buyers are currently in control.
  2. Entry: Sell when RSI crosses below 50 (was at or above, now below). Enter at the cross bar's close or next open.
  3. Stop and exit: Stop above the swing high before the cross. Exit when RSI crosses back above 50.

Why it works

RSI 50 is the equilibrium point where average gains equal average losses. Entering on the 50-cross means you're trading with the moment control flips, joining momentum rather than fighting it.

Watch out for

Chops in sideways markets where RSI oscillates around 50. Best on trending instruments or combined with a price-action trigger.

Pairs well with

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Popular markets for this pattern: EUR/USD, Soybeans, Cotton, Feeder Cattle, Copper, Natural Gas, USD/JPY, USD/CHF, AUD/USD, NZD/USD, SPY, IWM, DIA