MAGIC MACD: Trend-Filtered MACD Signals with EMA Confirmation

Summary

MAGIC MACD combines a standard MACD crossover signal with a slower MACD histogram, a price filter based on the 50-period EMA, and two short EMAs used as visual crossover confirmation. The explanation recommends waiting for a lower-period MACD signal to agree with the higher-period histogram and EMA conditions, and describes treating some signals that oppose the histogram’s color as potential reversals. It also presents histogram shading as a way to distinguish aligned and filtered conditions.

The document’s source uses 12, 26, and 9 parameters for the crossover MACD and 5, 50, and 30 for the histogram; however, the implementation’s entries are triggered directly by the crossover MACD, without enforcing the described histogram and EMA confirmations. The text gives no measured performance results despite listing a BTC/USDT futures test window. It cautions against using the indicator alone and notes the risk of noise and sideways conditions, but does not define systematic exits or risk limits.

Key ideas

• The indicator combines a faster MACD crossover with a slower MACD histogram and EMA-based trend context.
• The guide suggests waiting for histogram and EMA agreement before acting on crossover markers.
• The source code’s strategy entries follow MACD crossovers directly, so they do not enforce all described confirmations.
• A BTC/USDT futures test window is listed without results or a systematic risk and exit plan.

Tags

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