223# MACD ATR with WATR MT5 Strategy

Joy 22 2025

The MACD ATR Trend Reversal MT5 Strategy is designed to capture trend changes with high precision by combining momentum and volatility indicators. The strategy uses the MACD histogram to detect shifts in market momentum and the WATR (Weighted ATR SuperTrend) to confirm trend direction and support/resistance levels. By aligning momentum with volatility-based trend filters, the strategy seeks to enter only when both indicators confirm the same direction. This reduces false signals and increases the probability of following strong market moves. Suitable for any currency pair, index, or commodity, the setup can be applied on a 2-minute timeframe or higher, making it adaptable to both intraday and swing trading styles.

Setup

Timeframe: M2 or higher

Symbols: Any (FX, indices, commodities)

Platform: MetaTrader 5

Indicators

MACD ATR (12, 26, ATR 14)
- We use the MACD histogram (MACD – Signal). “Green” = histogram > 0, “Red” = histogram < 0.
  
  ATR(14) is calculated (optionally used for risk/filters).
WATR (10, 2.7, 10)
- Implemented as a SuperTrend-style band built from ATR(10) × 2.7.
  
  When the trend is up, the WATR line plots below price; when trend is down, it plots above price.

Entry rules

Buy: MACD histogram is green AND WATR is below the current candle.

Sell: MACD histogram is red AND WATR is above the current candle.

Exit

Close on opposite signal (flip) or use optional SL/TP and a WATR trailing stop.

Note: Only one trade per direction.

Conclusion

The MACD ATR Trend Reversal MT5 Strategy provides a structured and disciplined trading approach by filtering entries through two complementary indicators. Using MACD for momentum and WATR for trend confirmation ensures that trades are only taken when the market shows both strength and direction. Exits are clearly defined, either on opposite signals or via a trailing WATR stop, which helps lock in profits while keeping risk controlled. While no strategy guarantees success, consistent application of these rules—combined with proper money management—can make this system a reliable framework for identifying and trading trend reversals across different markets.