On the lower part of the MACD, if we have a first peak higher than a second peak on the left of the first peak, we draw a trendline on this two peak. Or if we have a first peak higher than a third peak on the left of the first peak, we draw a trendline on this two peaks. If there is no MACD value under the trendline between this two peaks, the trendline is validated. Then if the MACD goes under the trendline, we buy.
On the upper part of the MACD, if we have a first peak lower than a second peak on the left of the first peak, we draw a trendline on this two peaks. Or if we have a first peak lower than a third peak on the left of the first peak, we draw a trendline on this two peaks. If there is no MACD value over the trendline between this two peaks, the trendline is validated. Then if the MACD goes over the trendline, we sell.
A system that can be hardly optimized. It can only be visually backtested. It is a part of a bigger future EA, MACD Divergence EA.
|