MACD 4H Rhythm

// This Pine Script v5 strategy is licensed under the MIT License
// Tested with Backtrex (https://backtrex.com) on 10 years of M1 data
// Anti-repainting: all references use close[1]
// Based on the classic 4H MACD Forex Strategy (Phillip Nel)

//@version=5
strategy("MACD 4H Rhythm", overlay=true, default_qty_type=strategy.percent_of_equity, default_qty_value=2)

// Inputs
fastLen = input.int(12, "MACD Fast Length")
slowLen = input.int(26, "MACD Slow Length")
signalLen = input.int(9, "MACD Signal Length")
emaFast = input.int(21, "Fast EMA")
emaSlow = input.int(50, "Slow EMA")
slPips = input.float(50, "Stop Loss (pips)")
tpPips = input.float(100, "Take Profit (pips)")

// Pip value
pipValue = syminfo.mintick * 10

// Indicators (using close[1] to prevent repainting)
[macdLine, signalLine, histogram] = ta.macd(close[1], fastLen, slowLen, signalLen)
histPrev = ta.macd(close[2], fastLen, slowLen, signalLen)
fastEMA = ta.ema(close[1], emaFast)
slowEMA = ta.ema(close[1], emaSlow)

// Signals
histTurnsPositive = histogram > 0 and histogram[1] <= 0
histTurnsNegative = histogram < 0 and histogram[1] >= 0
bullTrend = fastEMA > slowEMA
bearTrend = fastEMA < slowEMA

// Entry conditions
longCondition = histTurnsPositive and bullTrend
shortCondition = histTurnsNegative and bearTrend

// Execute trades
if longCondition
    strategy.entry("Long", strategy.long)
    strategy.exit("Long Exit", "Long", stop=close - slPips * pipValue, limit=close + tpPips * pipValue)

if shortCondition
    strategy.entry("Short", strategy.short)
    strategy.exit("Short Exit", "Short", stop=close + slPips * pipValue, limit=close - tpPips * pipValue)

// Plots
plot(fastEMA, "EMA 21", color=color.blue)
plot(slowEMA, "EMA 50", color=color.red)