Bullish Hammer Entries Filtered by MACD and Volume

Summary

This strategy marks bullish hammer candles and enters long when the MACD line and signal line are both at or below zero, while volume exceeds the prior bar. The hammer condition requires a small real body, a lower shadow at least twice the body, and a very short upper shadow. Position size is capped by a platform risk setting.

The strategy exits all open positions when both MACD components are above zero. The script also calculates RSI and moving averages, but its RSI exit and moving-average stop conditions are not used in the active trading rules. The document provides code and a brief description, but no backtest results, asset or timeframe guidance, or evaluation of trading costs. Its effectiveness therefore cannot be assessed from the material alone.

Key ideas

• A long entry requires a bullish hammer, nonpositive MACD and signal values, and rising volume versus the previous bar.
• The hammer definition emphasizes a long lower shadow and a small body with little upper shadow.
• The strategy closes all positions when both MACD components turn positive.
• RSI and moving-average conditions are calculated but do not affect the active entry or exit rules.
• The document gives no performance evidence or market-specific guidance.

Tags

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