MACD Signal Line Cross

Entry Logic

• Exact Entry Trigger: Enter long when the MACD line crosses above the signal line. Enter short when the MACD line crosses below the signal line.
• Confirmation: The cross should happen on the correct side of the zero line (e.g., long cross below zero is a stronger signal).
• Timeframe: 15-minute, 60-minute.
• Market Condition: Trending.

Exit Logic

• Profit Targets: Exit on the opposite signal line cross.

Stop Loss Structure

• Hard Stop: Place stop below the most recent swing low.

Risk Management Framework

• Risk Per Trade: 1% of account capital.

Position Sizing Model

• Sizing Approach: Fixed fractional.

Trade Filtering

• Market Conditions to Avoid: Ranging markets.

Context Framework

• Trend Direction: Only take crosses in the direction of the higher timeframe trend.

Trade Management Rules

• Breakeven: Move stop to breakeven after a 1R move.

Time Rules

• Optimal Window: Any time during the main session.

Setup Classification

• A+ Setup: A signal line cross that occurs as a pullback in a strong trend.

Market Selection Criteria

• Instruments: Any liquid instrument.

Statistical Edge Metrics

• Win Rate: 40-50%.
• Profit Factor: 1.7.
• Expectancy: 0.3R.

Failure Conditions

• Strategy Fails: In choppy markets with many false signals.

Psychological Rules

• Discipline: Avoid overtrading; focus on crosses that align with the broader market context.

Advanced Components

• Filters: Use an ADX filter to only trade in trending markets (ADX > 25).

Location

• Strongest: As a continuation signal in an established trend.