MACD Sign Agreement for Trade Entries and Exits

Summary

This note describes a simple expert-advisor rule based on the signs of two MACD indicator lines. It opens a buy when both lines are positive and a sell when both are negative. When their signs differ, the position is closed. The document also lists configurable inputs for trade volume, the signal-line period, and the spacing between the fast and slow moving-average periods, along with a magic number used to identify trades.

The source provides the entry and exit logic but no backtest, market, timeframe, performance figures, or risk controls. It therefore explains how the rule is intended to operate without showing whether it is profitable or robust. The note does not specify how the lines are calculated, how often signals are checked, or what happens when a signal reverses while a position is open. Those details and costs such as spread and slippage would matter when evaluating or implementing the approach.

Key ideas

• The strategy opens a buy when both MACD lines have positive signs.
• It opens a sell when both lines have negative signs.
• It closes a position when the two lines have different signs.
• Inputs include volume and periods that define the moving-average and signal lines.
• The document provides no testing results or risk-management rules.

Tags

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