MACD Confluence Strategy | Trend, Pullback & Reversal Entries by blitz_locked
By blitz_locked
Performance Metrics
- Author: blitz_locked
- Symbol: NASDAQ:QQQ
- Timeframe: 30 minutes
Description
What it isMACD Confluence Strategy uses MACD for timing and a slow ATR channel plus a higher-timeframe check to decide whether a trade is allowed. MACD alone fires constantly in chop, so most of the logic here filters when its signals are allowed to trade.How it works1. Regime filter. An entry is considered only when all of these agree:Price is on the right side of a 200 EMA channel, and that EMA is sloping the same way.ADX is above a minimum (18 by default), and DI+ or DI- confirms the direction.The higher-timeframe MACD histogram (4h by default) points the same way. It reads the last completed higher-timeframe bar, so it does not repaint.Price is not already stretched too far from the channel basis.2. Three entry typesT (trend cross): MACD crosses its signal line in the direction of the regime. An optional setting only takes crosses that follow a pullback.P (pullback): the histogram dips at least 25% from its recent peak, then turns back up with the trend.R (reversal): price tags an outer channel band, the histogram turns, and a confirming candle closes. This is a counter-trend entry and ignores the higher-timeframe filter.3. Exits and riskStop at 2x ATR and target at 3R, both adjustable.At +1R the stop moves to break-even, then a chandelier trail takes over.Optional exit on an opposite MACD cross, and an optional time stop.Position size risks a fixed percentage of equity (1% by default) based on stop distance, with a cap on total notional.FeaturesATR-normalized MACD pane: lines and histogram are scaled by ATR and squashed smoothly into a -100 to +100 range, so readings are comparable across symbols and timeframes.Four-shade histogram, a cloud between MACD and signal, and the higher-timeframe histogram as a step line.ATR channel on the price chart with the outer reversal bands highlighted.T / P / R entry markers, plus stop and target lines while a trade is open.Bars tinted green or red when the regime is bullish or bearish.Live stats table: regime, ADX, position, trades, win rate, profit factor and net P/L.Direction control (both, long only, short only), and each entry type can be switched off.TipsStart with the defaults, then change one setting at a time. Test on several symbols and timeframes, not just the one that looks best.For a pure trend system, turn off R. For fewer, higher-quality trades, turn on “T only after pullback” and raise the minimum ADX.Pick a higher timeframe at least 4 to 6 times your chart timeframe.On choppy or range-bound markets, raise the minimum ADX or lengthen the cooldown between entries.Adjust commission and slippage in the strategy properties to match your broker.WarningsThis is an educational tool, not financial advice. Past performance does not predict future results.Backtests can be misleading. Results depend heavily on the symbol, timeframe, date range, and fee and slippage assumptions.Exits are simulated on historical bar data, so real fills, gaps and slippage can differ from the backtest.Reversal (R) entries trade against the trend and can lose repeatedly in strong moves.Check that the backtest has a meaningful number of trades before drawing any conclusion from it.Risk per trade and the notional cap limit exposure but do not remove the risk of loss.