MACD Pullback Strategy for ThinkorSwim

J

jezzer47

Member
2019 Donor
So this is a makeup for my last strategy post. My last strategy didn't have any entry criteria and was more philosophy than a strategy. So here is my very first strategy I ever learned which still holds up to this day.

On the chart place 2 Macd indicators. I like to use macd two lines, and macd histogram.

For macd two lines settings are 3/6/20

for macd histogram settings are 50/100/9

The basis of this strategy is that we use the Macd histogram to determine the trend. Then we look for pullbacks on the trend with the macd two lines. Some criteria that must be met to get a valid setup.

1. the macd value line (default blue on settings) must pull above or below the 0 levels.
2. the macd avg line (default yellow) must be above the 0 for a uptrend or below the 0 for a downtrend.

When you get a valid setup the macd value line will create a sort of a bubble. This is signaling a pullback granted that the avg line and trend coincide with each other.

Entry is above or below pull back bar or when the value line crosses above or below the avg line

The exit is on you. No designated exit for this.

Please remember that since we are following trend choppy markets will not be good to trade.

Also, some trades will not be exact. The valid setup is the perfect variation but as in trading, nothing is ever perfect.

If you want to add other indicators to complement it you can such as ema or pivot levels.







As with any system, this does give false signals when the trend changes. That is something you have to live with when trading.

Ask any questions and I will try my best to answer.

*edit scan settings
uptrend:
Code:
MACD("fast length" = 3, "slow length" = 6, "macd length" = 20)."Avg" is greater than 0 and

MACD("fast length" = 3, "slow length" = 6)."Value" is less than 0 and

MACD("fast length" = 3, "slow length" = 6)."Value" is less than MACD("fast length" = 3, "slow length" = 6, "macd length" = 20)."Avg" and

MACD("fast length" = 50, "slow length" = 100)."Value" is greater than MACD("fast length" = 50, "slow length" = 100)."Avg" and

MACD("fast length" = 50, "slow length" = 100)."Value" is greater than MACD("fast length" = 50, "slow length" = 100)."ZeroLine"

downtrend:
Code:
MACD("fast length" = 3, "slow length" = 6, "macd length" = 20)."Avg" is less than 0 and

MACD("fast length" = 3, "slow length" = 6)."Value" is greater than 0 and

MACD("fast length" = 3, "slow length" = 6)."Value" is greater than MACD("fast length" = 3, "slow length" = 6, "macd length" = 20)."Avg" and

MACD("fast length" = 50, "slow length" = 100)."Value" is less than MACD("fast length" = 50, "slow length" = 100)."Avg" and

MACD("fast length" = 50, "slow length" = 100)."Value" is less than MACD("fast length" = 50, "slow length" = 100)."ZeroLine"
 
Last edited by a moderator:
T

tabs999

Member
How does the scan identify setups? never used scan feature sorry
 
T

tabs999

Member
can you make a small video how use the scanner for noobs or maybe i can ask you directly if you have discord my moniker is there
 
Rojo Grande

Rojo Grande

Member
VIP
@jezzer47 For the last two lines in your scan that use the 50 fast & 100 slow lengths, are you also using 9 as the MACD length?
 
Last edited:
R

rovo

Member
VIP
@jezzer47 are you watching in realtime on a 5min chart for the avg to approach the value line?
 
J

jezzer47

Member
2019 Donor
@jezzer47 are you watching in realtime on a 5min chart for the avg to approach the value line?

Yes. The ideal setup is for the value line to above or below the 0 line while the avg remains on the side of the trend (above 0 for up trend, below 0 for down trend).
 
R

rovo

Member
VIP
@jezzer47 I really like the simplicity of your strategy. I hope you post some more.
 
F

fpapedo

New member
VIP
Yes. The ideal setup is for the value line to above or below the 0 line while the avg remains on the side of the trend (above 0 for up trend, below 0 for down trend).
me likey,alot
 
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