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momentum

MACD Line Cross

Buys when the MACD line crosses above its 9-day signal line and sells on the reverse cross — a momentum-shift strategy.

Indicators:MACD

Entry Logic

Buy when the MACD line (12-26 EMA difference) crosses above its 9-day signal line.

Exit Logic

Sell when the MACD line crosses below the signal line.

How Rules Combine

MACD = fast EMA (12) minus slow EMA (26); the signal line is a 9-day EMA of that difference. A cross means short-term momentum has just overtaken smoothed momentum.

When It Works (Market Edge)

Trending markets where momentum shifts persist for weeks.

When It Fails

Sideways markets: the lines cross constantly while price goes nowhere — the classic whipsaw pattern.

Common Myths

Myth: MACD crosses are reliable buy/sell triggers.

Truth: In ranges the line crosses the signal several times a month and most crosses lose money. Crosses alone have no edge without trend context.

Myth: MACD pinpoints the exact turning point.

Truth: MACD measures momentum, not the future. A cross confirms a move that started days earlier.

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5Y Rankings

Performance across major assets, sorted by return.

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AssetTotal ReturnWin RateProfit FactorMax DrawdownAvg DurationTradesAction