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Fair Value Gap strategyvsMACD trend with ADX strength filter strategy

Fair Value Gap strategy: Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills. Β· MACD trend with ADX strength filter strategy: Take MACD long crossovers only when ADX confirms a trend actually exists.

Mean reversionLong & short

Fair Value Gap strategy

Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.

ConfluenceLong only

MACD trend with ADX strength filter strategy

Take MACD long crossovers only when ADX confirms a trend actually exists.

Indicators

  • Fair Value Gap (min gap 0.1%)
  • MACD (12 / 26 / 9)
  • ADX (period 14)

Timeframes

5m15m1h4h
1h4h1d

Bias

Long & short

Long only

Market fit

Range-bound

Filtered, selective

Entry rules

  • Long on the bar a bullish FVG opens (bull_signal > 0).
  • Short on a bearish FVG.
  • MACD line crosses above signal AND
  • ADX(14) is above 20 β€” there's a real trend, not just chop.

Exit rules

  • Position closes the bar the gap is filled (rebalanced).
  • 4% trailing stop, 3-bar cooldown.
  • MACD line crosses below signal.
  • Hard 4% stop; 3% trailing stop locks in winners.

Expected behavior

Momentum-into-imbalance β€” fires on explosive bars, exits when the imbalance reverts. Equity curve is choppy with frequent small trades; works best when price respects imbalances and gives the bot a chance to ride the displacement.

Trades less frequently than vanilla MACD because the ADX gate sits open only in directional regimes. Equity curve is flatter through chop and adds when a sustained trend kicks in.

Complexity

1 ind Β· 2 entry Β· 2 exitSimpler
2 ind Β· 2 entry Β· 2 exitMore advanced

Which one is right for you?

Derived from the bias, timeframe and indicator profile of each strategy β€” not a back-test forecast.

When to pick Fair Value Gap strategy

  • You expect range-bound β€” the thesis is "Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills."
  • You want a long & short bot on 5m–4h candles with a balanced rule-set.
  • You're comfortable monitoring 1 indicator (Fair Value Gap (min gap 0.1%)).

Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.

When to pick MACD trend with ADX strength filter strategy

  • You expect filtered, selective β€” the thesis is "Take MACD long crossovers only when ADX confirms a trend actually exists."
  • You want a long-only bot on 1h–1d candles with a balanced rule-set.
  • You're comfortable monitoring 2 indicators (MACD (12 / 26 / 9), ADX (period 14)).

Take MACD long crossovers only when ADX confirms a trend actually exists.

Fair Value Gap strategy

Buy the imbalance bar of a fresh bullish FVG; short the mirror. Exit when the gap fills.

MACD trend with ADX strength filter strategy

Take MACD long crossovers only when ADX confirms a trend actually exists.

Related comparisons

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