What is a MACD Crossover? ๐ค
A "cross" in the MACD indicator refers to the MACD line breaking above or below the signal line.
It is used by traders to signal potential changes in trend direction. ๐
Let's build a MACD crossover strategy and backtest its performance!
๐งต
A "cross" in the MACD indicator refers to the MACD line breaking above or below the signal line.
It is used by traders to signal potential changes in trend direction. ๐
Let's build a MACD crossover strategy and backtest its performance!
๐งต
Let's keep it real simple:
Enter long when the MACD line crosses up the signal line, and exit when the MACD line crosses down the signal line.
This will allow us to capture the upside move on a bullish cross, and close out the trade when a bearish cross occurs. โ
Enter long when the MACD line crosses up the signal line, and exit when the MACD line crosses down the signal line.
This will allow us to capture the upside move on a bullish cross, and close out the trade when a bearish cross occurs. โ
We backtested this strategy on the 1 hour timeframe over the last 4 years, and these three names absolutely CRUSHED buy & hold:
๐ฅ $SHOP 864.39% versus 163.38%
๐ฅ $SQ 177.21% versus -2.04%
๐ฅ $BA 147.99% versus -49.25%
Simple, yet highly effective!
What tickers next?๐
๐ฅ $SHOP 864.39% versus 163.38%
๐ฅ $SQ 177.21% versus -2.04%
๐ฅ $BA 147.99% versus -49.25%
Simple, yet highly effective!
What tickers next?๐
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