This indicator combines three powerful tools—EMA crossovers, Bollinger Bands, and MACD—to create a layered trading approach.
Core Trend Framework (5 EMA vs. 10 EMA crossovers + Bollinger Bands)
MACD as your external confirmation tool for final execution
Key Mechanics
Step 1: Trend Foundation
Bullish Signal: 5 EMA crosses above 10 EMA
Bearish Signal: 5 EMA crosses below 10 EMA
Bollinger Bands act as an early-warning system (price exceeding upper band = preliminary caution).
Step 2: MACD as Final Arbiter Your definitive sell signal occurs only when:
The MACD's signal line (9-period EMA of MACD) crosses BELOW the MACD line
This crossover must align with either: a) A prior Bollinger Band warning or b) The 5/10 EMA bearish crossover
Why This Works
Bollinger Bands flag potential exhaustion early
EMA crossovers confirm trend direction
MACD crossover becomes your non-negotiable trigger – ensuring momentum has decisively shifted before acting
Example Workflow (Sell Scenario): ① Price touches upper Bollinger Band → Early caution ② 5 EMA crosses below 10 EMA → Trend reversal confirmed ③ MACD lines cross bearish → Execute sell
This structure prevents premature exits by requiring all three components to align, with the MACD crossover serving as your final "green light."