Granville Price Reversals Confirmed by Sequential MACD Signals

Summary

This long-only trend strategy begins when price crosses above an EMA, using that bar as a potential reversal reference. It then waits for an initial MACD bullish crossover, a move above the MACD level at that first crossover, and a later bullish recross as the entry trigger. The stop is placed at the reversal bar’s low, while the target is set at 1.618 times that bar’s range above entry. The listed defaults are a 20-period EMA and MACD settings of 12, 26, and 9.

The document argues that requiring several confirmations may filter false signals and that anchoring exits to the reversal bar adapts them to its range. It also recognizes that the sequence can delay entries, that sideways markets may generate losses, and that parameters may be sensitive to market conditions. Suggested refinements include volatility classification and volume confirmation. Published settings identify BTC_USDT on Binance with daily bars over roughly one year, but no backtest performance figures are given; the claimed benefits therefore remain unverified in the supplied material.

Key ideas

• A close crossing above the EMA starts the reversal-confirmation sequence.
• The entry waits for an initial MACD bullish crossover, a higher MACD reading, and a subsequent bullish recross.
• The stop uses the reversal bar low, and the target uses 1.618 times its range above entry.
• Multiple confirmations may reduce some false entries but can also make the signal late.
• The published daily BTC_USDT backtest settings include no reported performance results.

Tags

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