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Moving Momentum (MACD histogram turn)

What it does: Buys when momentum turns up after a pullback in an uptrend (ChartSchool's Moving Momentum). In an uptrend (20-day average above the 150-day average), this buys when the MACD histogram turns positive, as long as the Stochastic oscillator dipped below 20 (a pullback) at some point in the last 5 daily candles. It sells when the histogram turns back negative, or at the stop-loss.

Style: Momentum · Difficulty: Intermediate · Risk: medium · Ready: 2 of 2 variants

When people use it: It tends to work on pullbacks in uptrends.

Where it struggles: It struggles in markets without a trend.

Markets it was written for: BTC, ETH, majors. Timeframes: 1d (4h).

Open it in the Strategy Library (on the Strategies page), pick a variant, adjust the settings and press Add to my strategies. It becomes your own strategy: edit, backtest or trade it like any other.

Long

Buys when momentum turns up after a pullback in an uptrend (ChartSchool's Moving Momentum).

Labels: Momentum, Long, Spot, Intermediate, Slow

  • Direction: Buy (long) · Market: spot
  • Trigger: On candle close · Main timeframe: Auto (1d)

Entry

  • IF SMA(20) > SMA(150) (1d) and Stoch(14,3,3) %K < 20 within the last 5 candles (1d) and MACD(12,26,9) Histogram crosses above 0 (1d)

Exit: Indicator-Based Exit

  • IF MACD(12,26,9) Histogram crosses below 0 (1d)
  • Loss controls: Stop-loss % 8%

Settings

Setting Default Editable What changing it does
Fast trend average 20 Yes The faster trend average. Shorter reacts sooner to new trends; longer is steadier.
Slow trend average 150 Yes The slower trend average. Shorter allows trades in younger trends; longer is stricter.
Setup window 5 Yes How many candles back the Stochastic pullback may be, counting the current one. A longer window gives more trades, but some will come well after the pullback; a shorter one is stricter and trades less.

How it works (as shown in the app)

  • In an uptrend (20-day average above the 150-day average), this buys when the MACD histogram turns positive, as long as the Stochastic oscillator dipped below 20 (a pullback) at some point in the last 5 daily candles. It sells when the histogram turns back negative, or at the stop-loss.
  • It tends to work on pullbacks in uptrends.
  • It struggles in markets without a trend.
  • Built for daily candles (4-hour also works).

Short (perp)

Shorts when momentum turns down after a rally in a downtrend.

Labels: Momentum, Short, Futures, Slow, Backtest Only

  • Direction: Sell (short) · Market: swap
  • Trigger: On candle close · Main timeframe: Auto (1d)

Entry

  • IF SMA(20) < SMA(150) (1d) and Stoch(14,3,3) %K > 80 within the last 5 candles (1d) and MACD(12,26,9) Histogram crosses below 0 (1d)

Exit: Indicator-Based Exit

  • IF MACD(12,26,9) Histogram crosses above 0 (1d)
  • Loss controls: Stop-loss % 8%

Settings

Setting Default Editable What changing it does
Fast trend average 20 Yes The faster trend average. Shorter reacts sooner to new trends; longer is steadier.
Slow trend average 150 Yes The slower trend average. Shorter allows trades in younger trends; longer is stricter.
Setup window 5 Yes How many candles back the Stochastic bounce may be, counting the current one. A longer window gives more trades, but some will come well after the bounce; a shorter one is stricter and trades less.

How it works (as shown in the app)

  • In a downtrend (20-day average below the 150-day average), this shorts when the MACD histogram turns negative, as long as the Stochastic oscillator rose above 80 (a bounce) at some point in the last 5 daily candles. It buys back when the histogram turns back positive, or at the stop-loss.
  • It tends to work on bounces in downtrends.
  • It struggles in markets without a trend.
  • Built for daily candles (4-hour also works).
  • Shorting means you profit if the price falls and lose if it rises.
  • Suggested leverage is at most 3x. On isolated margin, at 3x the exchange closes the position (liquidation) if the price moves about 33% against you, and you lose the margin you put into it. Keep your stop well inside that.
  • For now this version runs in backtests only; paper and live futures trading are coming later.

Warnings

  • "Backtest only for now: paper and live trading of shorts are coming later.": shown on short variants. They need perpetual or futures pairs.
  • Some variants suggest leverage. On isolated margin a liquidation loses the margin in that position; keep any stop well inside the liquidation distance (the Trade Builder warns you when it isn't).
  • Once added, the strategy's conditions get the usual condition checks. Messages show under each condition on the entry / exit conditions screen; setting errors start with the indicator's short name (for example "MACD: Fast must be between 1 and 1000") and block saving, while the other warnings never block saving and repeat in the strategy's Entry or Exit section. See the indicator pages below for each one.
  • "You already have this strategy with these settings (…). Change a setting to add another copy.": shown on the variant's page in the Strategy Library when you already added this variant with the same settings.

Good to know

  • After you add it, the strategy keeps the library's trigger and an Auto main timeframe; you can change both in the builder. Nothing links it back to the library, except that the builder still shows the library's explanations in the info bubbles.
  • Changing a setting before adding it also changes the saved name, so you can tell copies apart.
  • Past results don't predict future ones. Try it in a backtest and on paper before using real money.
  • Indicators used: MACD, SMA, Stoch.