Skip to content
All library documents

Trading MACD Divergence Only at RSI Overbought and Oversold Levels

Article MQL5 code base
Read the original

Summary

This brief trading description proposes using MACD divergence as a trade signal, but only when RSI confirms an extreme condition. For a long setup, RSI must be below 30 during bullish divergence; for a short setup, RSI must be above 70 during bearish divergence. The text also identifies configurable divergence settings, trade size, stop loss, and profit target in pips as inputs.

The material outlines entry filters and risk-control parameters but does not define how divergence is detected, which MACD settings to use, or how stops and targets should be selected. It offers no charts, examples, backtest results, or guidance on instrument selection and execution. The signal description is therefore a sketch rather than a complete or validated trading system, and RSI extremes alone do not establish that a reversal will occur.

Key ideas

  • Bullish MACD divergence is considered for long trades only when RSI is below 30.
  • Bearish MACD divergence is considered for short trades only when RSI is above 70.
  • Trade size, stop loss, profit target, and divergence settings are listed as configurable inputs.
  • The description lacks precise signal definitions and empirical evidence, so it is not a complete tested system.

Tags

Technical indicatorsMean reversionForexRisk management

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