Trend Confirmation with MACD, Parabolic SAR, and Supertrend

Summary

This trend-following system combines MACD, Parabolic SAR, and Supertrend to confirm directional entries. A long requires MACD above its signal line, price above SAR, and a bullish Supertrend state; a short requires all three bearish conditions. Positions close when MACD and price relative to SAR both turn against the trade, so a change in only one of those measures does not trigger an exit. The document gives example defaults: MACD periods of 12, 26, and 9, SAR step and maximum of 0.02 and 0.2, and a Supertrend ATR factor of 3 with a 10-period ATR.

The rationale is that agreement across momentum, trend direction, and a dynamic price reference may filter some isolated signals. However, the document presents no measured results; its published configuration is a short BNB/USDT futures backtest with zero commission and slippage. It notes that confirmation can delay entries, parameters matter, and ranging markets may produce losing signals. Exits rely on indicator changes rather than an explicit protective stop, making risk controls and broader testing important limitations.

Key ideas

• Long and short entries require agreement among MACD, SAR, and Supertrend.
• Exits require both a contrary MACD state and a contrary price position relative to SAR.
• The indicators represent momentum, trend direction, and a dynamic price reference.
• The document warns about delayed entries, parameter sensitivity, and weak performance in ranges.
• No measured trading results are reported, and the described rules have no explicit stop-loss.

Tags

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