MACD + Stochastic RSI Combo Strategy — Double Confirmation System
r/technicalanalysisstocksDaily or 4-hourby reddit_community
MACD crossover + Stochastic RSI oversold cross for double confirmation. 40% fewer false signals vs MACD alone. SPY daily backtest validated.
ENTRY RULES
MACD line crosses above signal line | Stochastic RSI(14,14,3,3) crosses above 20 | Both signals must occur within 3 bars of each other | Price must be above 50 SMA for longs | Enter at close of confirmation bar
EXIT RULES
MACD line crosses below signal line = exit | OR Stochastic RSI crosses below 80 from overbought | Stop loss at 2 ATR below entry | Take partial profits at 1.5:1 RR | Close if both indicators go bearish simultaneously
INDICATORS
MACDStochastic RSISMAATR
ORIGINAL POST
234
r/technicalanalysisposted by reddit_community
MACD + Stochastic RSI Combo Strategy — Double Confirmation System
Combine MACD crossover with Stochastic RSI for double confirmation. Buy signal: MACD line crosses above signal line AND Stochastic RSI crosses above 20 from oversold zone. The combination eliminates many false signals from using either alone. Backtested on SPY daily: reduces false signals by 40% compared to MACD alone, while only missing 15% of real signals.
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