The idea
MACD crosses up while price is above the 200 EMA; exit on the cross down. The 200 EMA filter removes most counter-trend trades, which is where MACD crossovers usually fail.
Strategy guide · Trend + momentum · long
MACD Trend Momentum strategy: exact rules, strengths and weaknesses.
MACD crosses up while price is above the 200 EMA; exit on the cross down. The 200 EMA filter removes most counter-trend trades, which is where MACD crossovers usually fail.
Entry rule
Buy when the MACD line crosses above its signal line while price is above the 200 EMA.
Exit rule
Sell when the MACD line crosses back below the signal line.
Where it works
Established uptrends: the 200 EMA filter keeps it out of most bear-market bounces.
Where it fails
Choppy markets around the 200 EMA, where momentum flips before a move develops.
The common mistake
Dropping the 200 EMA filter to get more trades. The filter is what removes most of the false signals.
Backtest it yourself
Sign in, open Genni Strategies and pick "MACD Trend Momentum" from the leaderboard, or build it with the rule builder. Choose a coin and timeframe and press "Run backtest" to see every trade on up to 1,000 real candles, fees included. "Start paper trading" then follows it live without money.
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Questions
Frequently asked questions
What are the rules of the MACD Trend Momentum strategy?
Entry: Buy when the MACD line crosses above its signal line while price is above the 200 EMA. Exit: Sell when the MACD line crosses back below the signal line.
Does the MACD Trend Momentum strategy work?
The 200 EMA filter removes most counter-trend trades, which is where MACD crossovers usually fail. It tends to do well here: Established uptrends: the 200 EMA filter keeps it out of most bear-market bounces. It tends to lose here: Choppy markets around the 200 EMA, where momentum flips before a move develops. Past results do not predict future results.
How can I backtest the MACD Trend Momentum strategy for free?
Sign in, open Genni Strategies and pick "MACD Trend Momentum" from the leaderboard, or build it with the rule builder. Choose a coin and timeframe and press "Run backtest" to see every trade on up to 1,000 real candles, fees included. "Start paper trading" then follows it live without money.
This page is education, not investment advice. Trading involves substantial risk of loss. Read next: Trading indicators · Trading strategies · Candlestick patterns