Most traders have a hard time identifying a solid and steady strategy that yields long-term profits. As there are hundreds of indicators available in the market, only a few manage to withstand the test of time. One of these is the MACD—a technical indicator frequently misapplied or poorly understood.
Here’s Linda, a trading legend. With a career that ranges across several hedge funds and starting her own fund in 2002, Linda has earned millions using a targeted approach. But what’s astonishing is that she didn’t use dozens of tools. Her success lies in applying a single powerful system—the Best MACD trading strategy.
Linda’s version of the MACD is unlike anything we’ve ever seen. She refers to it as the Anti Setup, and it takes the form of a novel setup for the MACD indicator combined with a set of rules that ascertain high-probability areas of trend reversal. In this article, we’ll dissect her strategy step by step so you can start applying the same reasoning to your trades.
Who Is Linda and Why Her Strategy Matters?
Linda isn’t just your typical trader. She has had experience working with top-tier hedge funds and gained her notoriety by always drawing returns out of choppy markets. The difference between her and others lies in the way she intimately understands technical patterns—and more importantly, her ground-breaking application of the Best MACD trading strategy.
Her strategy isn’t using default MACD settings. She tweaks it and does away with the histogram completely, turning this very popular tool into an effective signal generator for reversals and pullbacks.
How to Set Up the Top MACD Trading Strategy
Step-by-Step Setup:
Head over to TradingView
Add the MACD indicator
Adjust the settings:
- Fast Length: 3
- Slow Length: 10
- MACD Length: 16
- Deselect the Histogram
- Set Average Type to: Simple
For better visualization:
- Change MACD line color to red
- Change Signal line color to yellow
Once the setup is done, you’re ready to apply the Best MACD trading strategy on any market or timeframe.
Understanding Linda’s “Anti Setup” Strategy
Linda’s strategy targets trend reversals at pullback points. Instead of chasing the trend, she waits for it to show signs of hesitation—where momentum is shifting and uncertainty is creeping in.
She calls this the Anti Setup. The concept is straightforward: identify the correction in a trend, then set up for the reversal.
Here’s how you find these entries with the Best MACD trading strategy:
Step 1: Identify a Trend
Find a strong move in one direction (up or down). This is the setup for a possible pullback.
Step 2: Wait for MACD Line to Make a New High (or Low)
In a long setup, the red MACD line should establish a new high above its past high. In a short setup, it should establish a new low below its past low.
This indicates momentum is strong and ready to turn in the very near future.
Step 3: Signal Line Must Confirm the Trade Direction
In a long trade, the yellow signal line should be inclined upward. In a short trade, it should be inclined downward.
This alignment reaffirms the direction of the initial trend and confirms step 1.
Step 4: MACD Line Returns to Signal Line
Here is the “anti” portion of the Best MACD trading strategy.
The MACD line must cross back towards the signal line and both lines must start moving in opposite directions. This divergence indicates a temporary pause or indecision in the trend—precisely when Linda enters the trade.
Entry, Stop Loss, and Take Profit
Linda did not reveal publicly her rules for managing risk, but after backtesting, this is what performs well:
Entry: The moment the lines diverge following the reversion.
Stop Loss: Below the latest low (for long positions) or above recent high (for short positions).
Take Profit: Placed at the latest high (for long) or low (for short).
This simple yet effective strategy guarantees a good risk-to-reward ratio, usually 1:2 or better.
Real Examples Utilizing the Best MACD Trading Strategy
Long Trade Example: AMD Stock (1-Hour Chart)
Strong down move identified.
- MACD line establishes new high.
- Signal line trending upward.
- MACD line comes back and crosses signal line.
- Both lines trend in opposite directions.
Outcome: Enter trade, set stop loss below recent low, and take profit at recent high—successful trade.
Another Long Trade: Microsoft
Same pattern occurs:
- Downtrend
- MACD new high
- Signal line upwards
- MACD line reverses
- Divergence starts
Result: Another victory employing the Best MACD trading strategy.
Short Trade Example:
Strong uptrend established.
- MACD line makes new low.
- Signal line slopes down.
- MACD line returns to signal line.
- Lines diverge in opposite directions.
Result: Sell short, stop at recent high, take profit at recent low—another winning trade.
Why This is the Best MACD Trading Strategy
There are hundreds of MACD strategies, but Linda’s approach stands out above the rest by:
- Adjusting MACD settings for increased sensitivity
- Eliminating the histogram to trade strictly on price momentum
- Using formalized rules that actually measure real market sentiment
- Correcting, rather than following overextended trends
Most people trade MACD for simple crossovers or a study of the histogram, but Linda’s Anti Setup offers an extra level of accuracy that is often neglected.
Conclusion
Linda’s success is no fluke. Her millions came from mastering a unique process—using one tool, the MACD, in a way nobody else does. If you’ve been struggling to find a consistent strategy, it’s time to consider the Best MACD trading strategy as demonstrated by a true trading legend.
With proper setup, disciplined entries, and risk control, you might be able to start noticing strong results. Keep in mind: trading is not about following every flashy setup but about rules and consistency.
Use this strategy on various assets and timeframes, and you’ll understand why this really is the Best MACD trading strategy for trend reversals and pullbacks.