MAC-Fibonacci Entries from Moving-Average Crossovers

Summary

This strategy uses a 5-period exponential moving average crossing a 20-period simple moving average to trigger long or short signals. For a long setup, the crossover candle’s close and the preceding wave low define two reference points; for a short setup, the close and the preceding wave high are used. Fibonacci levels then guide the profit target and stop placement, with the document describing a 161.8% target and stop choices spanning 38.2% to 78.6% according to risk appetite.

A separate exit rule closes a losing position before its stop is reached if the 5-period EMA crosses the 8-period SMA against the trade. The source explicitly cautions that the EA is not profitable over the long term and provides no supporting test data, market, timeframe, or execution assumptions. The rules therefore describe a setup rather than establish that it has an edge.

Key ideas

• A 5-period EMA crossing a 20-period SMA triggers directional trade setups.
• The crossover close and the prior swing extreme define the points used for Fibonacci levels.
• The described profit target is at 161.8%, while stop placement is selected between stated Fibonacci levels based on risk appetite.
• An opposing 5-period EMA and 8-period SMA crossover can exit a losing position before its stop is hit.
• The source warns that the EA has not been profitable over the long term and supplies no validation details.

Tags

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