Momentum15m / 30m CandlesComplexity: Advanced
MACD Zero-Lag Histogram Divergence
Detects divergence between price swing extremes and MACD histogram momentum bars. Pinpoints institutional reversals where price creates higher highs but momentum slows, indicating impending trend exhaustion.
Public & Generic Educational Strategy Notice: This strategy blueprint represents a publicly known mathematical formulation and standard technical analysis concept. Algo Software Innovations does NOT claim proprietary copyright, invention, or exclusive ownership over these formulas. You can adapt, customize, and deploy this logic to your private cloud VPS.
Mathematical Logic & Formula Formulation
Bullish Divergence = Price makes Lower Low while MACD Histogram prints Higher Low
Deterministic Entry Rules
Long Entry (BUY)
- ✓Price makes Lower Low while MACD Histogram forms Higher Low (Bullish Divergence).
- ✓MACD line crosses above Signal line.
Short Entry (SELL)
- ✓Price makes Higher High while MACD Histogram forms Lower High (Bearish Divergence).
- ✓MACD line crosses below Signal line.
Exit Criteria & Stop Loss Protection
Initial Stop LossRecent divergence swing low minus 0.5x ATR.
Target Profit2.5% - 4.0% swing profit.
Risk/Reward Expectancy1 : 3.0
Strategy Configuration Specs
Market Segment:MCX Crude Oil, Gold & Stock Futures
Candle Timeframe:15m / 30m Candles
Risk-to-Reward Ratio:1 : 3.0
Throttling Compliance:≤ 10 OPS Enforced
Required TA-Lib Indicators:
MACD (12, 26, 9)RSI (14)ATR (14)ZigZag Swing Detector
Risk Management Controls
- •Position sizing dynamically adjusted according to ATR distance.
Target Trader Profile:High-reward swing setups for commodities and volatile futures.