Macd Volume Strategy

Strategy combining MACD (Moving Average Convergence Divergence) with volume confirmation. Enters positions when MACD line crosses the Signal line and confirms with increased volume.

Testing indicates an average annual return of about 175%. It performs best in the stocks market.

MACD crossovers are filtered by an increase in volume to confirm momentum. Buy signals come on bullish crosses with expanding volume; sells do the opposite.

Momentum traders watching for volume spikes may find it valuable. Risk is limited using an ATR stop.

Details

• Entry Criteria:
  • Long: MACD crosses above Signal && Volume > AvgVolume * VolumeMultiplier
  • Short: MACD crosses below Signal && Volume > AvgVolume * VolumeMultiplier
• Long/Short: Both
• Exit Criteria:
  • MACD cross in opposite direction
• Stops: Percent-based at StopLossPercent
• Default Values:
  • MacdFast = 12
  • MacdSlow = 26
  • MacdSignal = 9
  • VolumePeriod = 20
  • VolumeMultiplier = 1.5m
  • StopLossPercent = 2.0m
  • CandleType = TimeSpan.FromMinutes(5).TimeFrame()
• Filters:
  • Category: Breakout
  • Direction: Both
  • Indicators: MACD, Volume
  • Stops: Yes
  • Complexity: Intermediate
  • Timeframe: Mid-term
  • Seasonality: No
  • Neural Networks: No
  • Divergence: No
  • Risk Level: Medium