MACD and Williams %R Trend Filter for Long and Short Trades

Summary

This short-term strategy combines a 200-period EMA, MACD, and smoothed Williams %R. It enters long when price is above the EMA, the MACD histogram is positive, and the faster smoothed %R line is above the slower line. Short entries require the opposite conditions. Exits use a change in MACD and %R alignment, along with overbought or oversold thresholds. The author describes it as aimed at scalping or intraday use, particularly on five- to fifteen-minute regular-session bars, and mentions possible use for short-dated options signals.

The document says the parameters have not been optimized for particular instruments. A published setup uses BTC/USDT futures over roughly one month, with a 15-minute base period and hourly strategy period, but no performance statistics are given. The source also calculates daily ATR and volume averages, though these do not appear in the stated entry or exit rules. The method can therefore be studied as a multi-indicator rule set, but the provided material does not demonstrate profitability or explain execution costs and risk sizing.

Key ideas

• Long entries require price above the 200-period EMA, positive MACD histogram, and faster smoothed Williams %R above its slower line.
• Short entries require the reverse alignment of price, MACD, and smoothed Williams %R.
• Exits combine indicator reversals with Williams %R threshold conditions.
• The strategy is presented for short-term trading, but its parameters are not tuned to any specific instrument.
• The published futures test setup has no reported performance results, and calculated volume and ATR measures are not used in the listed signals.

Tags

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