How the MACD crossover + trend filter strategy works
MACD is the difference between the 12- and 26-period EMAs; its 9-period EMA is the signal line. A cross of MACD above the signal line shows momentum turning up. Taking only crosses that happen while price is above the 200 EMA keeps you trading with the main trend.
Rules
- Buy when MACD crosses above its signal line and the close is above EMA 200.
- Exit when MACD crosses below the signal line.
Backtests use historical data and simplified fills. Past performance does not guarantee future results. Education only — not investment advice.