MACD histogram
This approach relies on the MACD histogram, which is a technical indicator used to track trends. Specifically, it leverages signals that suggest a crossover is probable when the MACD signal line reaches a certain point.
The MACD histogram, short for Moving Average Convergence Divergence histogram, is a popular tool used by traders to identify potential buy and sell signals in a stock's price chart. It is created by subtracting the 26-period exponential moving average (EMA) from the 12-period EMA, resulting in a line that oscillates above and below a zero line. When the MACD line crosses above the signal line (a 9-period EMA of the MACD), it is seen as a bullish signal, while a cross below indicates a bearish signal.
The MACD histogram takes this analysis one step further by plotting the difference between the MACD line and the signal line as bars above and below the zero line. This makes it easier to identify changes in momentum and confirm trend reversals.
How to work with it
Buy method conditions
A buy order is allowed when the MACD histogram crosses up the zero line.
Normal constraints like "buy once, sell once" don't apply to this strategy: each time buying criteria occur, Gunbot will place a buy order as high as set in your balance settings.
Sell method conditions
A sell order is allowed when the MACD histogram drops below 0.
Gain protection is optional for this strategy. Be aware that this can lead to sell orders below your break-even point.
Trading example
Example of how trading with this strategy can perform. Details and settings
The infographic below describes what triggers trades with this strategy.
Buy settings
Buy settings are the primary trigger for buy orders. These parameters control the execution of buy orders when using macdh
as buy method.
Buy enabled
- Description
- Values
- Order types
- Name
Set this to false to prevent Gunbot from placing buy orders.
Values: true or false
Default value: true
Affects | Does not affect |
---|---|
Strategy buy | Strategy sell |
DCA buy | Stop limit |
RT buy | Close |
RT buyback | RT sell |
Parameter name in config.js
: BUY_ENABLED
Single Buy
- Description
- Values
- Order types
- Name
Enable this to restrict macdh
to placing just a single buy order on the first crossup, then it will go in sell mode.
Useful when you combine macdh
with a different sell method or use other parameters that prevents sell orders from happening at every crossdown.
Values: true or false
Default value: false
Affects | Does not affect |
---|---|
Strategy buy | Strategy sell |
Stop limit | |
Close | |
RT sell | |
DCA buy | |
RT buy | |
RT buyback |
Parameter name in config.js
: SINGLE_BUY
Sell settings
Sell settings are the primary trigger for sell orders. These parameters control the execution of sell orders when using macdh
as sell method.
Sell enabled
- Description
- Values
- Order types
- Name
Set this to false to prevent Gunbot from placing sell orders.
Values: true or false
Default value: true
Affects | Does not affect |
---|---|
Strategy sell | Strategy buy |
Stop limit | RT buy |
RT sell | RT buyback |
Close | |
DCA buy |
Parameter name in config.js
: SELL_ENABLED
Gain
- Description
- Values
- Order types
- Name
This sets the minimum target for selling when DOUBLE_CHECK_GAIN
is enabled.
Values: numerical – represents a percentage.
Default value: 0.5
Affects | Does not affect |
---|---|
Strategy sell | Strategy buy |
RT buy | |
RT buyback | |
RT sell | |
Close | |
DCA buy | |
Stop limit | |
Parameter name in config.js
: GAIN
Indicator settings
Relevant indicators for trading with MACD.
These settings have a direct effect on trading with macdh
.
Period
- Description
- Values
- Order types
- Name
This sets the candlestick period used for trading, this affects all indicators within the strategy.
Only use supported values. The trading settings editor suggests valid values for the selected exchange..
Setting a short period allows you to trade on shorter trends, but be aware that these will be noisier than longer periods.
Values: numerical– represents candlestick size in minutes.
Default value: 15
Affects | Does not affect |
---|---|
Strategy sell | RT buy |
Strategy buy | RT buyback |
DCA buy (when using an indicator to trigger) | RT sell |
Close | |
Stop limit |
Parameter name in config.js
: PERIOD
MACD Short
- Description
- Values
- Order types
- Name
The number of periods used for calculating the short-term moving average for MACD.
Values: numerical, represents a number of periods.
Default value: 5
Affects | Does not affect |
---|---|
Strategy sell | RT buy |
Strategy buy | RT buyback |
RT sell | |
Close | |
Stop limit | |
DCA buy |
Parameter name in config.js
: MACD_SHORT
MACD Long
- Description
- Values
- Order types
- Name
The number of periods used for calculating the long-term moving average for MACD.
Values: numerical, represents a number of periods.
Default value: 20
Affects | Does not affect |
---|---|
Strategy sell | RT buy |
Strategy buy | RT buyback |
RT sell | |
Close | |
Stop limit | |
DCA buy |
Parameter name in config.js
: MACD_LONG
MACD Signal
- Description
- Values
- Order types
- Name
The number of periods used for calculating the MACD signal line.
Values: numerical, represents a number of periods.
Default value: 10
Affects | Does not affect |
---|---|
Strategy sell | RT buy |
Strategy buy | RT buyback |
RT sell | |
Close | |
Stop limit | |
DCA buy |
Parameter name in config.js
: MACD_SIGNAL