Profit-Hunter

MACD/EMA Long Strategy

This incredibly simple strategy uses a combination of the 20 EMA and bullish / bearish MACD crosses as a low risk method of getting in and out of markets.

Depending on whether the market is above or below the 200 SMA , the script determines if the market is in bullish or bearish territory. Above the 200 SMA , the script will ignore the 20 EMA as a buy condition and buy solely on the confirmation of a bullish MACD cross upon the close of a candle. In this bullish market, the script will only enable the sell condition if both the MACD is bearish AND a close below the 20 EMA occurs. This is to reduce the chances of the script selling prematurely in the event of a bearish MACD cross, if the market is still in overall bullish territory.

When the market is below the 200 SMA , the confirmation occurs in the opposite direction. The buy condition will only be met if both the MACD is bullish AND a close above the 20 EMA occurs. However, the sell condition ignores the 20 EMA and will sell solely on the confirmation of a bearish MACD cross upon the close of the candle.

This strategy can be used in both bullish and bearish markets. This conservative strategy will slightly underperform in a bull market, with the sell condition occasionally being met and then potentially buying back higher. However, it will successfully get you out of a turning market and automatically switch into a more 'risk-off' mentality during a bear market. This strategy is not recommended for sideways markets, as trading around the 20 EMA coupled with a relatively flat MACD profile can cause the strategy to buy the peaks and sell troughs easily.
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Comments

Thanks for the script very interesting, is there anyway you can exclude sideway squeezes, so if price is remaining within a tight range? And I can't seem to see how to set alerts for the conditions? thanks
+5 Reply
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