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MACD

 

MACD zero line – a trigger that asks MACD to cross above/below the MACD zero line

Used on your trading time frame:

  • If trend is bullish when MACD crosses above the zero line look for a trade event
  • If trend is bearish when MACD crosses below the zero line look for a trade event

 

MACD crossover – a trigger that asks MACD to cross above/below the signal line

Used on your trading time frame:

  • If trend is bullish when MACD crosses above the MACD signal line look for a trade event
  • If trend is bearish when MACD crosses below the MACD signal line look for a trade event

The MACD zero line method will provide fewer triggers than the MACD crossover method. A growth trader is more likely to use the MACD zero line method and an income trade is more likely to use the MACD crossover method.

 

 

Move on to Step 4 - Module 2 > Trading System Builder Tool Kit: Trading Rules > Trigger: Stochastic