Multi-Timeframe MACD Scoring with EMA, ATR, and Reversal Filters
Summary
This strategy converts MACD behavior into a directional score using changes in the MACD line and histogram, plus a weighted contribution when the MACD line crosses its signal line. It combines the current timeframe score with a score from a mapped higher timeframe. The higher-timeframe request can use lookahead on or off; the on setting can expose future higher-timeframe values in historical calculations, so results using it may be misleading.
Entries arise when the combined score crosses zero, subject to an ATR activity threshold. A 30-minute EMA pair classifies trend direction, separating with-trend and counter-trend signals, while stronger signals require an additional score threshold. The script trades both directions, reverses on opposing conditions, and sets ATR-based stop orders. It includes alert payloads and a table of equity and trade statistics, but the document provides no reported test period, market, or verified results. The filters and thresholds are configurable, and their effectiveness is not established here.
Key ideas
- MACD line and histogram changes contribute weighted values to a composite directional score.
- A mapped higher-timeframe score is blended with the current timeframe score.
- Thirty-minute EMA alignment and separation classify trend direction, while ATR filters out low-volatility entries.
- Zero-line score crossings trigger trades, and opposing signals can reverse positions with ATR-based stops.
- Enabling higher-timeframe lookahead can create historical values unavailable in real time, and no validated performance results are supplied.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.