MACD Strategy
Trade using MACD crossovers and divergences.
Setup
Components
- MACD (12, 26, 9)
- Support/resistance
- Trend identification
Timeframe
- Daily for swing
- 4H for intraday
Rules
Long Entry
1. Trend up or ranging
2. MACD crosses above signal
3. Price at support/confluence
4. Confirmation → BUY
Short Entry
1. Trend down or ranging
2. MACD crosses below signal
3. Price at resistance/confluence
4. Confirmation → SELL
Stop & Target
| Element | Value |
|---|---|
| Stop | Below/above recent swing |
| Target | 2:1 or 3:1 |
Common Mistakes
1. Trading Every Crossover
Fix: Only trade with trend
2. No Stop
Fix: Always have stop
Key Takeaways
- MACD — Momentum indicator
- Crossover — Signal
- With trend — Higher probability
- Confirm — With price
Related
rsi-strategy.md >>>
macd.md >>>
MACD confirms momentum.