Bollinger Band and MACD Breakouts with Momentum and Volume Filters

Summary

This long-only strategy combines Bollinger Bands, MACD momentum, and volume confirmation. It enters when price crosses above the band midpoint with a positive, strengthening MACD histogram, or when MACD crosses above its signal line while price is above the midpoint. A volume filter, enabled by default, requires current volume to meet or exceed its recent average, and the entry candle must close above its open.

Exits use three alternative rules: weakening momentum and stalling price after a recent approach to the upper band, a bearish close below the midpoint by an ATR-based buffer, or an overextended move above the upper band with a strong positive MACD reading. The supplied script defines indicator settings and order logic but provides no market, backtest period, or performance evidence. Terms such as smart distribution are labels for the rule set, not demonstrated explanations of market participants’ behavior. There is no explicit stop order or short logic shown, and outcomes will depend on timeframe, instrument, costs, and parameter choices.

Key ideas

• Long entries require a bullish price or MACD breakout, with a positive candle and optional volume confirmation.
• The default volume filter compares current volume with its 20-period average.
• Exit conditions combine upper-band context, weakening MACD, price stalling, and an ATR-buffered trend break.
• A separate exhaustion rule exits an unusually extended bullish move.
• The source gives no backtest evidence, and its market-behavior labels are not validated claims.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.