The MACD Breakout strategy watches the MACD for sudden expansions. When readings jump beyond their normal range, price often starts a new move.
A position opens once the indicator pierces a band derived from recent data and a deviation multiplier. Long and short trades are possible with a stop attached.
This system fits momentum traders seeking early breakouts. Trades close as the MACD falls back toward the mean. Defaults start with FastEmaPeriod = 12.
Entry Criteria: Indicator exceeds average by deviation multiplier.
Long/Short: Both directions.
Exit Criteria: Indicator reverts to average.
Stops: Yes.
Default Values:
FastEmaPeriod = 12
SlowEmaPeriod = 26
SignalPeriod = 9
SmaPeriod = 20
DeviationMultiplier = 2.0m
StopLossPercent = 2.0m
CandleType = TimeSpan.FromMinutes(5)
[*]Filters:
Category: Breakout
Direction: Both
Indicators: MACD
Stops: Yes
Complexity: Intermediate
Timeframe: Short-term
Seasonality: No
Neural Networks: No
Divergence: No
Risk Level: Medium