MACD Crossovers with EMA Trend Filters and SMA Exits

Summary

This directional strategy combines MACD crossovers with an 18-period EMA filter. It opens a long position when MACD crosses above its signal line while price closes above the EMA, and a short when MACD crosses below while price closes below it. It permits only one position at a time. Longs exit if price closes below the 10-period SMA of lows or MACD turns bearish; shorts exit if price closes above the 10-period SMA of highs or MACD turns bullish.

The document presents the rules and identifies trending conditions as the intended setting, while warning that sideways markets can produce false signals. It lists intraday and swing use cases across several asset types, but provides no backtest dates, performance metrics, or empirical evidence to assess those claims. It recommends position sizing and avoiding excessive leverage. The exit rules use indicator and price conditions rather than a stated fixed risk amount, so trade risk can vary with volatility and the distance to the SMA threshold.

Key ideas

• MACD crossovers generate directional signals only when price is on the matching side of the 18-period EMA.
• The strategy allows only one open position at a time.
• Long exits use the 10-period SMA of lows or a bearish MACD crossover; short exits use the SMA of highs or a bullish crossover.
• The rules are intended for trending conditions, while sideways markets may produce false signals.
• The document provides no measured backtest results, and position sizing remains a separate risk control.

Tags

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