Combining MACD, Supertrend, and DEMA for Aligned Entries

Summary

This strategy combines three indicators to seek directional entries. A long signal requires the MACD histogram to cross above zero while Supertrend is bullish and the short-period DEMA is above the long-period DEMA. A short signal uses the inverse alignment, including a histogram cross below zero. The script also plots the moving averages, Supertrend, and entry markers.

Positions are opened only when the strategy is flat. It sets stop-loss and take-profit levels as percentages of the recorded entry price, with separate formulas for long and short trades. These parameters are configurable, as are the indicator lookbacks. The document provides the rules and source code but no backtest results or performance evidence. It does not describe asset selection, timeframe selection, transaction-cost assumptions, or testing methodology, so the indicator combination and stated risk controls should not be taken as evidence of profitability.

Key ideas

• Long entries require a bullish MACD histogram cross, bullish Supertrend, and the short DEMA above the long DEMA.
• Short entries require the inverse alignment, including a bearish MACD histogram cross.
• The script records an entry price and sets percentage-based stop-loss and take-profit levels.
• The document gives no performance results or testing methodology.

Tags

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