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Strategies / Pattern / Hammer Candle Below Zero MACD

Hammer Candle Below Zero MACD

Buys a bullish hammer candle with volume above the prior bar while the MACD line and its signal are at or below zero. Closes the position when both MACD lines move above zero.

PatternLong onlyIntradayNikkei 2255 min
n/aProfit factor
7,068Net profit USD
67.14%Win rate
493Trades
-5,626Max drawdown
14.34Avg trade

Best run of 19. Nikkei 225, 5 min, spread 10, from run sweeps:2026-10-11-NIKKEI-5m-opt.tsv:4.

Entry rules, long

  1. The lower shadow is at least 2 times the body and the upper shadow is at most 10% of the range.
  2. The MACD line and signal are both at or below zero.
  3. Volume is higher than on the previous bar.

Exit rules

  1. The MACD line and signal are both above zero, which closes the long.

Test conditions

PeriodUp to 2026-10-11
InstrumentNikkei 225, 5 minutes
Spread10 points
Starting capital1,000,000
CostsSpread only. Commissions and overnight financing are not included.
BarsUp to 200,000 bars, fewer where the instrument has less history
Last tested2026-10-11

Every run

Markets and timeframes tested

MarketTimeframePFTradesWin %NetMax DD
Nikkei 225Best run5 minn/a 49367.147,068 USD-5,626
Nikkei 2251 hourn/a 15967.9210,853 USD-4,665
Nasdaq 1004 hoursn/a 4278.577,804 EUR-1,741
Dow Jones1 hourn/a 9874.496,495 EUR-3,362
Nikkei 2254 hoursn/a 2277.276,321 USD-5,116
Nasdaq 1001 hourn/a 14771.435,602 EUR-2,187
Nikkei 225Dailyn/a 785.714,557 USD-3,599
Nasdaq 10010 minn/a 48171.314,015 EUR-2,123
SilverDailyn/a 887.503,812 USD-880
DAX 401 hourn/a 11367.263,474 EUR-1,251
Brent CrudeDailyn/a 1181.823,393 EUR-1,207
DAX 40Dailyn/a 1080.002,722 EUR-1,088
Brent Crude1 hourn/a 13868.122,527 EUR-2,277
FTSE 1001 hourn/a 17375.721,847 EUR-1,028
Nasdaq 100Dailyn/a 6100.001,766 EUR-1,695
S&P 5001 hourn/a 16372.391,722 EUR-456
FTSE 10010 minn/a 47368.501,401 EUR-386
GBP/USDDailyn/a 1080.001,084 USD-773
S&P 5004 hoursn/a 4075.00650 EUR-566

Charts

Results by run

Top 10 of 19 runs. The full list is in the table above.

Net profitMax drawdown

The code

ProBuilder code, as tested

// ==============================================================
// Hammer Candle Below Zero MACD
// ProRealAlgos Strategy Library  |  prorealalgos.com
// Type: Pattern
// Direction: Long only
// Timeframe tested: 5 minutes
// ==============================================================

DEFPARAM CumulateOrders = false

myMacd = MACDline[12,26,9](close)
signal = ExponentialAverage[9](myMacd)
abody = abs(close - open)
arange = high - low
bodytop = max(open, close)
bodybottom = min(open, close)
shadowtop = high - bodytop
shadowbottom = bodybottom - low

14 more lines: the entry and exit rules.

Setup

How to load it

  1. Copy the code with the copy button on the code block.
  2. In ProRealTime, open a chart of the instrument and timeframe you want to test, then open ProOrder > New trading system and choose "Create with programming".
  3. Paste the code, give the system a name and save it.
  4. Click "Backtest", set your own spread and position size, and run it before you consider trading it live.

Indicators used

MACDEMAVolume
Read this firstKnown weaknesses3 points
  • No profit factor is available, because only sweep results exist for this strategy.
  • The maximum drawdown of 5,626 USD is large next to the net profit of 7,068 USD.
  • The code sets no stop loss, so a losing trade stays open until an exit signal arrives.

Questions

About this strategy

Can I run Hammer Candle Below Zero MACD in ProOrder?

Yes. The code is ProBuilder and runs as an automated ProOrder system. Backtest it on your own account with your own spread and position size before trading it live.

Which markets was it tested on?

It was tested on 19 market and timeframe combinations. The best run by trade count was Nikkei 225, 5 minutes, with 493 trades.

How large was the drawdown?

The best run had a maximum drawdown of 5,626 USD at the tested position size, against a net result of 7,068 USD.

Does it trade long, short or both?

It only takes long trades.

Related

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Breakout Reversal

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Past backtest results do not guarantee future results. This is not financial advice. Curated and maintained by ProRealAlgos. ProRealTime™ is a trademark of ProRealTime SAS. prorealalgos.comStatsDocs