Introduction
BigShort empowers you to more consistently trade the 20/50 moving average crossover—a widely used signal for identifying trend reversals and continuations. This approach is ideal for traders looking to grow their account, supplement income, or work toward financial independence. Many BigShort traders use this strategy to spot entry/exit points and improve trading consistency.
What Is a 20/50 Moving Average Crossover?
A 20/50 moving average crossover occurs when the 20‑day (short‑term) moving average crosses above or below the 50‑day (long‑term) moving average. A bullish crossover (20 above 50) indicates the start of an upward trend, while a bearish crossover (20 below 50) signals potential downward momentum. This method helps you validate entries and exits, increasing trust in your trading decisions.
How to Identify the Setup – 20/50 Moving Average Crossovers
Plot both the 20‑day and 50‑day moving averages on your chart.
Monitor for the precise point where the two lines intersect.
The 20 moving above 50 is the bullish. The 50 moving above the 20 is bearish.
How BigShort Increases the Profit
How to Trade the Setup
Prepare: Open the SF Segregated tab on the left navigation bar in BigShort.
Prior to entry: Notice the coming crossover, if it's bullish, look at the "Big Four" indicators Dark Pools (DPs), Momo Flow, Net Option Flow (NOF), and SmartFlow for bullish agreement among several of the indicators. Look for bearish agreement if the crossover is bearish. These four being in agreement shows that institutions are on your side.
Entry Point: Enter the trade once the crossover is confirmed by both the moving averages and BigShort’s supportive indicators.
Stop-Loss Placement: For a bullish setup, place your stop-loss just below the recent support area; for a bearish setup, position it just above the recent resistance.
Profit More with BigShort: Traditionally, you have to stay in the trade until the lines cross again and turn bearish. This causes you to take losses at the end of this trade. With BigShort, you can get out early, closer to the top, if the institutions are leaving early. If the lines look like they're going to cross bearishly, but the institutions are doubling down, you can stay in through the short term bearish cross as seen below.
Having clear, real time data on whether specific types of institutional, algorithmic, and retail flow gives you confidence far beyond what's possible otherwise.
By enabling you to monitor the large flows of capital, BigShort's strategy is designed to help you achieve more consistent trading returns and develop skills that lead to financial independence.