MACD

Concept

The MACD compares two exponential moving averages (fast and slow) and smooths the difference with a signal line. It measures momentum and detects when it shifts direction.

Idea

A long-entry condition occurs when the MACD line crosses above the signal line and the histogram is already meaningfully positive. A short-entry condition occurs when the MACD crosses below the signal line and the histogram is meaningfully negative.

Genetic Algorithm Parameters

• Fast EMA period
• Slow EMA period
• Signal line period
• Minimum histogram distance from the zero line

Best suited for

Ideal for momentum shifts and trend reversals

Less effective in flat sideways conditions