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.
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.
- 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