Customization Options

When you select MACD from the first Signal dropdown menu, you'll encounter a few sub-menus to customize your criteria:

Fast

This option allows you to specify the "fast" exponential moving average period. The default setting is usually 12, but you can alter this number to adjust the sensitivity of the MACD line.

Slow

Here, you can set the "slow" exponential moving average period, usually set at 26 by default. This slower line serves as a baseline to compare the fast line against.

Signal

This submenu lets you set the period for the signal line, generally set at 9. The signal line is used for generating trading signals and is an average of the MACD line itself.

Line

In this dropdown, you can select whether you're interested in the MACD line, Signal line, or MACD Histogram. Each option has its unique utility in identifying market trends.

Interactions

You can then choose the type of interaction you want between the MACD and the second criteria set, whether it's a threshold value or another MACD line. Some interactions include "crosses above," "is below," "equals," among others.

Combining MACD with Other Criteria

You have two primary options for your second criteria set in the third dropdown menu:

Threshold

If you're setting a threshold, you're specifying a numeric value to which the MACD (or its components) is compared.

MACD

Interestingly, you can use MACD as both your first and second criteria set. This allows you to test strategies that involve interactions between different components of the MACD, such as the MACD and Signal lines.