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