Bollinger Basis and MACD Breakout Entries with Momentum-Based Exits

Summary

This long-only strategy combines Bollinger Bands, MACD, volume, and candle direction to seek entries after a price or MACD breakout. A signal requires a bullish candle, adequate volume when that filter is enabled, and positive MACD momentum; price crossing above the Bollinger basis additionally requires a rising histogram. The configurable defaults use a 20-period band, a 6/12/8 MACD, and a 20-period average-volume comparison.

Three independent exit rules aim to close the position when conditions suggest weakening or excessive movement: a stall near the upper band with a shrinking MACD histogram, a bearish close below the basis by an ATR-based buffer, or a strong move beyond the upper band. The document provides the rules and source code, but no performance results or market-specific validation. Its labels for distribution and exhaustion are interpretations of indicator patterns, not proof of institutional activity or a reliable forecast; settings and behavior may also vary by instrument and timeframe.

Key ideas

• Entries require bullish price action and volume confirmation by default, along with a positive momentum condition from MACD.
• A price cross above the Bollinger basis is accepted only when the MACD histogram is positive and rising.
• The strategy closes long positions on a distribution-style stall, an ATR-buffered trend break, or an extreme upper-band move.
• The document specifies rules and code but provides no evidence of historical performance or robustness across markets.

Tags

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