Dual MACD Divergence with SMA28 Trend Filtering

Summary

This strategy looks for possible reversals by requiring bullish or bearish divergence on both a fast and a slow MACD, then filtering signals to times when price is within 1.5% of the 28-period simple moving average. The described rules compare recent five-bar price extremes with earlier ten-bar extremes and check whether each MACD histogram is moving in the corresponding direction. It is presented for 15-minute trading and supports long and short entries.

The stated exits use fixed percentage levels: a 1% stop and a 1.5% target, equivalent to a 1:1.5 risk-to-reward ratio. The document provides Pine Script source and backtest settings for SOL/USDT futures, but reports no performance results, so it does not establish profitability or signal reliability. It also warns that divergence can fail, fixed stops may not suit changing volatility, and signals can overtrade or depend heavily on selected parameters. The source’s described settings and claimed 15-minute use should be checked against the published backtest configuration, which lists a two-day period.

Key ideas

• Long and short entries require matching divergence signals from both MACD configurations.
• The strategy filters entries to prices within 1.5% of the 28-period simple moving average.
• It sets a 1% stop and a 1.5% profit target relative to entry.
• The document gives backtest configuration but no outcome data to assess performance.
• Divergence failures, parameter sensitivity, and volatility can limit the approach.

Tags

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