---
title: "MACD Momentum Strategy"
slug: "strategies-and-features-macd-momentum-strategy"
description: "Explore the \"MACD Momentum\" strategy, a custom trading approach leveraging RSI, MACD indicators, and options trading to maximize market momentum. Understand the open and close conditions, earnings handling, and specific options selections for enhanced trading success."
tags: ["MACD Momentum", "MACD", "Market Analysis Techniques", "Earnings Trading"]
updated: 2024-07-25T15:44:40Z
published: 2024-07-25T15:44:40Z
canonical: "learn.trademachine.com/strategies-and-features-macd-momentum-strategy"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://learn.trademachine.com/llms.txt
> Use this file to discover all available pages before exploring further.

# MACD Momentum Strategy

This is a discussion of the "MACD Momentum" strategy.

### Overview

- Long call diagonal
- 2 legs

### MACD Momentum Strategy Settings

- MACD Momentum Strategy utilizes a custom strategy which is labeled "qa_Diagonal_50-20_CS" under the custom strategy dropdown menu.

#### MACD Momentum Open Conditions:

- RSI 14 Days below 40
- Fast EMA 12 Days Slow EMA 26 days above signal EMA 9 days

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2874%29.png)

#### Details on Options TradeMachine is Selecting for MACD Momentum Strategy:

- 1x **long 50 delta** call near **60 days to expiration**
- 1x **short 20 delta** call near **30 days to expiration**

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2873%29.png)

#### Earnings Handling for MACD Momentum Strategy:

- [Never Trade Earnings](/v1/docs/earnings-and-trademachine)

#### MACD Momentum Close Conditions:

- Options reach expiration (Close all legs with front month options)

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2868%29.png)

#### Open next trade for MACD Momentum:

- [At Normal Time](/v1/docs/what-does-the-and-open-next-trade-at-normal-time-and-re-open-immediately-mean)

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2871%29.png)

[Video Transcript](https://learn.trademachine.com/docs/macd-momentum-strategy-transcript)

## Related

- [Understanding MACD Technical Condition](/macd-technical-condition.md)
- [January 2024](/january-2024.md)
- [Getting Started with the Today Tab](/getting-started-today-tab.md)