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You can make rules based on whatever you want! Sometimes people do this based on actions (clicks, forms), sometimes based on personas in combination with lead scoring, and then the one I've used most is based on buying stages (percentages in SFDC).
It helps to decide what this particular nurture stream is about, discuss with sales, and map it out. You can always edit too if you find out new criteria to better fit.
Remember that the Transition Rule goes into the Stream you want to PULL leads INTO.
As Kim noted, the best ones are triggers based on behaviors.