Because the previous candle CLOSED above the 50 EMA (or SMA).
Actually - this is VERY important - and it's where this system will either 'make or break you':
It's the previous CLOSE that's important.
On GBP/USD I can, unfortuanately, see disaster coming on the 1 hour chart (maybe) but - you'll eventually get the 'hang of it' and settle on a timeframe that gives you the best results. My 'money' right now is on the 4 hour and the daily - depending on the pair - the 1 hour seems to be a bit of a 'bit*h' to maintain i.e. false signals galore.
Regards,
Dale.
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