Entry rules: Once the price makes it through the “pivot Line” – dotted white line on the figure below (drawn using the latest price peak) – and closes above (for uptrend) or below (for downtrend) the line buy/sell accordingly.
Exit rules: not set. However, exit can be found using Fibonacci method; or traders can measure the distance between point 2 and point 3 and project it on the chart for exit.
I believe there is some misunderstanding regarding point 3 here…
If we place a stop “below point 3 at second OK” on the screen shot above, we won’t be stopped…
Point 3 is the Lowest swing Low on the chart and is quite distant from our entry.
When MACD lines cross downwards, you look for 1-2-3 set-up to form. When the price starts “attacking” the “pivot Line” you check that MACD is still in SELL mode (two lines are heading down). Once the price closes below the “pivot Line” – place Sell order.