🌊 Swing · Trend + momentum

Williams %R + MACD duo

Combine Williams %R (momentum extreme) with MACD (trend direction). Long when Williams %R exits oversold AND MACD is bullish; opposite for shorts. Cross-confirmation filters weak signals.

Timeframe: Daily

Indicators: Williams %R, MACD (12,26,9)

Learn each indicator: MACD Lagging Williams %R Leading

Setup

Chart: daily candles; plot Williams %R (14) and MACD (12, 26, 9) in separate panes
Williams %R reads inverted 0 to −100: below −80 is oversold, above −20 is overbought
MACD histogram tells you trend strength; MACD line above signal line = bullish momentum

Entry

Long: Williams %R crosses back above −80 (out of oversold) AND MACD histogram is rising or turns positive. Short: Williams %R crosses back below −20 (out of overbought) AND MACD histogram is falling.

Exit

Exit longs when Williams %R reaches −20 or MACD histogram peaks and starts declining. Symmetric for shorts.

Stop-loss

Below the swing low that triggered the oversold reading (long) or above the swing high (short). Roughly 1×ATR(14).

When it works

End-of-pullback in an existing trend — momentum reversal aligned with trend continuation
Both indicators agree — cross-confirmation filters noise
Wide indices/stocks with cleaner momentum profiles

When it fails

Choppy sideways action — repeated oversold/overbought signals with no follow-through
Only one indicator confirms — don't force the trade
Around major macro events where momentum indicators lag price shocks

TradingView backtest — 2 years on NSE:NIFTY

The in-browser chart above already simulates on 2 years of Nifty daily/hourly bars (60 days for 15-min due to a Yahoo Finance data cap). This section documents an independent second-source verification: run the exact same rules as a Pine Script on TradingView's Strategy Tester over the past 2 years of NSE:NIFTY daily bars, then compare.

SymbolNSE:NIFTY

TimeframeDaily

Period2 years

⬇ Download .pine

How to reproduce

Open NSE:NIFTY on TradingView
Switch chart interval to Daily
Open the Pine Editor (bottom-left Pine Editor tab)
Paste the contents of the downloaded .pine file, click Save, then Add to chart
Open the Strategy Tester tab (bottom); set the date range to the last 2 years
Screenshot the Performance Summary and share back — results table below will be populated

📊 Backtest results pending

Awaiting the TradingView Strategy Tester screenshot. Once shared, the results table (net profit, win rate, profit factor, max drawdown, Sharpe) will replace this note.

General trading rules that apply

Regardless of the specific setup, these apply to every strategy on this site:

Never risk more than 2% of your account on a single trade
Place a hard stop-loss before entering — no exceptions
Journal every trade: setup, reason, outcome, one lesson
After two consecutive losses, stop for the session
Backtest and paper-trade for a month before deploying real capital

Educational content only

Every strategy here is part of our in-house catalogue, written and calibrated for Indian markets. Past behavior does not guarantee future results. Charts run against 2-year Nifty data — actual results in your account will vary. Backtest, paper-trade, and size responsibly before risking real capital.

← Trading the Bollinger Bands MACD + Fibonacci retracement →