The MA indicator is short for English(Moving average) and is called the moving average indicator. The moving average(MA) has a trending characteristic, which is relatively stable, unlike the day K line that will rise and fall. The longer the moving average, the more stable the performance. Not easily up and down, you must wait for the true clarity of the stock price trend. The moving average is, in the final analysis, a trend-tracking tool that makes it easy to identify whether a trend has ended or reversed and whether a new trend is emerging.

In this issue, we share the MACD+MA index combination strategy. In the technical analysis, the combination of indicators is very common. Different indicators have different operation points and analysis methods. The combination of indicators can enhance the accuracy of the signal. The strategy is to compare the relationship between price and MA, and then measure the price movement acceleration by MACD index to judge the state of the market and construct a simple timing trading strategy.

(*backtest
start: 2018-11-01 00:00:00
end: 2018-11-22 00:00:00
period: 1h
exchanges: [{"eid":"Bitfinex","currency":"BTC_USD"}]
*)
​
​
// MACD calculation
FASTLENGTH:=12;
SLOWLENGTH:=26; 
MACDLENGTH:=9;
​
// Length of MA
L1:=50;
L2:=120;
​
// stop loss 5%  
STOPLOSS:=5; 
​
//MACD
MACDVALUE:=EMA(CLOSE,FASTLENGTH)-EMA(CLOSE,SLOWLENGTH);
AVGMACD:=EMA(MACDVALUE,MACDLENGTH);
MACDDIFF:=MACDVALUE-AVGMACD;
​
//MA1、MA2
DMA1:=MA(C,L1);
DMA2:=MA(C,L2);
BUYCONDITION:=MACDVALUE>0 && DMA1>DMA2 && MACDDIFF>0 && C>DMA1 && REF(C,1)>REF(DMA1,1);
SELLCONDITION:=MACDVALUE<0 &amp;&amp; DMA1<DMA2 &amp;&amp; MACDDIFF<0 &amp;&amp; C<DMA1 &amp;&amp; REF(C,1)<REF(DMA1,1);
​
// When to open position
BKVOL=0 AND BUYCONDITION,BK;
SETSIGPRICETYPE(BK,NEW_ORDER);
SKVOL=0 AND SELLCONDITION,SK;
SETSIGPRICETYPE(SK,NEW_ORDER);
​
// When to close position
BKVOL>0 AND (REF(MACDVALUE,1)<0 OR REF(DMA1,1)<REF(DMA2,1)),SP;
SKVOL>0 AND (REF(MACDVALUE,1)>0 OR REF(DMA1,1)>REF(DMA2,1)),BP;
​
// Start stop loss
SKVOL>0 AND HIGH>=SKPRICE*(1+STOPLOSS*0.01),BP;
BKVOL>0 AND LOW<=BKPRICE*(1-STOPLOSS*0.01),SP;
AUTOFILTER;

-------------------------------------

Backtest  on FMZ Quant to know more

Source Codehttps://www.fmz.com/strategy/127101

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