Volume-Filtered Fair Value Gap and MACD Reversal Strategy

Summary

This example strategy combines bullish and bearish fair value gaps with MACD crossovers filtered by RSI. It also defines trend-aligned flags using the relationship between price and a moving average, together with above-average volume. Entries require one of the directional signals, elevated volume, and an ADX reading above a threshold, and the strategy only enters when no position is open.

Positions receive a tick-based stop and a trailing exit, while alert messages are configured for entries and exits. A chart dashboard displays the entry price and selected indicator readings. The document provides code and parameter defaults, but no backtest results, market, timeframe, or evidence of profitability. Although its description mentions breakout lines, the shown logic does not implement them; performance and suitability therefore cannot be inferred from the material.

Key ideas

• Long and short signals combine fair value gaps or MACD reversals with volume and ADX filters.
• The reversal conditions pair MACD signal-line crosses with RSI thresholds.
• A simple moving average helps define trend-aligned flags alongside fair value gaps and elevated volume.
• The strategy uses a fixed tick stop and a trailing exit for open positions.
• The document reports no testing results, so it does not establish trading effectiveness.

Tags

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