MACD Zero Cross

This system trades momentum shifts when the Moving Average Convergence Divergence (MACD) histogram approaches the zero line. A rising MACD below zero or falling MACD above zero signals a potential reversal.

Testing indicates an average annual return of about 136%. It performs best in the stocks market.

The strategy waits for the MACD line to trend toward zero while still on the opposite side. Once momentum fades, it enters anticipating a swing in price.

Trades exit when MACD crosses its signal line or a stop-loss is triggered.

Details

• Entry Criteria: MACD trending toward zero from either side.
• Long/Short: Both directions.
• Exit Criteria: MACD crosses signal line or stop.
• Stops: Yes.
• Default Values:
  • FastPeriod = 12
  • SlowPeriod = 26
  • SignalPeriod = 9
  • StopLossPercent = 2.0m
  • CandleType = TimeSpan.FromMinutes(5)
• Filters:
  • Category: Momentum
  • Direction: Both
  • Indicators: MACD
  • Stops: Yes
  • Complexity: Basic
  • Timeframe: Intraday
  • Seasonality: No
  • Neural Networks: No
  • Divergence: No
  • Risk Level: Medium