This method employs the MACD indicator, which detects potential momentum shifts by examining signals.
The Moving Average Convergence Divergence (MACD) is a technical indicator that assists traders in predicting possible fluctuations in an asset's momentum. This indicator is derived from the convergence and divergence of two exponential moving averages, usually a 12-period EMA and a 26-period EMA. Traders utilize MACD to determine if an asset is likely to undergo a bullish or bearish trend, as well as anticipate trend reversals. A MACD line crossing above the signal line signifies a purchase signal, while a crossover below the signal line implies a sell signal.
Utilizing the Indicator
Conditions for Buy Method
A buy order is permitted when the MACD line crosses the signal line in an upward direction.
Traditional limitations such as single buys do not apply to this strategy: Gunbot will place a buy order up to the limit set in your balance settings each time the buying criteria are met.
Conditions for Sell Method
A sell order is allowed when the MACD line crosses the signal line in a downward direction.
Profit protection is optional with this strategy. Be mindful that this could result in sell orders below your break-even point.
An illustration of how trading using this approach can perform. For more information and settings
The infographic below demonstrates what activates trades utilizing this strategy.