MACD and EMA Trend Signals with SMA-Based Exits
Summary
This directional strategy pairs MACD crossovers with an 18-period EMA. It opens a long position when MACD crosses above its signal line while price is above the EMA, and opens a short position on the opposite crossover when price is below the EMA. The script permits only one position at a time. Long trades close if price falls below the 10-period simple moving average of lows or MACD turns bearish; short trades close if price rises above the 10-period average of highs or MACD turns bullish.
The accompanying description presents it for intraday and swing use and cautions that sideways markets can generate false signals. It advises attention to position sizing and leverage, but supplies no backtest period, performance statistics, or market-specific evidence. The SMA levels act as exit triggers rather than guaranteed stop orders, and the strategy’s trend and momentum indicators can lag or change rapidly. Its suitability across the listed markets and timeframes is asserted, not demonstrated.
Key ideas
- Long and short entries require a MACD crossover aligned with price relative to the 18-period EMA.
- A single-position rule prevents the script from opening another trade while one is active.
- Long exits use the 10-period low average or a bearish MACD crossover.
- Short exits use the 10-period high average or a bullish MACD crossover.
- The description warns of false signals in sideways conditions and provides no performance data.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.