Break of Structure + Retest Strategy
What Is the MACD Cross + Structure Break Entry Strategy?
The MACD Cross + Structure Break Entry Strategy combines momentum confirmation with real-time price structure to give you smart, trend-based entries. Instead of entering based on a lagging MACD signal alone, this strategy waits for a break in structure to confirm that momentum is real — and that price is ready to move.
By blending the MACD crossover with a structural shift, you avoid false signals and time your trades at moments where momentum and price behavior agree.
Why This Strategy Works
MACD alone can produce early or late signals. Structure alone can fake you out. But when both align, it tells you something much more powerful — the market is shifting direction with momentum on its side.
When the MACD line crosses the signal line, and price breaks a swing high or low shortly after, you now have a dual confirmation. This not only increases the probability of continuation, but also gives you clear entry, stop, and target zones based on structure.
It’s not about hoping for a move. It’s about waiting for momentum and structure to work together.
Tools and Conditions to Use
To execute this strategy properly, you’ll need the following:
MACD indicator (default settings: 12, 26, 9)
Clear swing high and swing low to define structure
A MACD cross in the direction of the trade
A break of structure shortly after the cross
15-minute, 1-hour, or 4-hour timeframes work best
When momentum and structure speak in unison, the setup becomes powerful.
Step-by-Step Guide to the MACD Cross + Structure Break Entry
Step 1: Add the MACD and Observe Momentum
Start by loading the MACD onto your chart.
Look for a clear cross of the MACD line over or under the signal line
A bullish cross occurs when the MACD line moves above the signal line
A bearish cross occurs when the MACD line moves below it
This is your momentum trigger — but not your entry.
Step 2: Identify Key Structure Levels
Now look at the chart and define price structure.
For a bullish cross, mark the most recent swing high
For a bearish cross, mark the most recent swing low
These levels serve as your confirmation zone
Structure is the filter that confirms whether momentum is real.
Step 3: Wait for a Structure Break
Once the MACD has crossed, wait for price to react.
If price breaks the structure in the direction of the MACD cross, that’s your green light
The break should be clean, with a strong candle closing beyond the level
If the structure holds or price chops, the setup is invalid
This is where patience pays off — no structure break, no trade.
Step 4: Confirm with a Candle or Lower Timeframe Break
After the structure breaks, look for a precise entry trigger.
A wick rejection or engulfing candle adds confidence
On lower timeframes, wait for a clean internal break of structure
Confirmation gives you a more accurate and timely entry
Momentum alone is not enough — always let price behavior confirm.
Step 5: Enter the Trade
Now that you have both the MACD cross and a structure break, it’s time to enter.
Enter on the candle close that confirms the break
Or use a limit entry on a retest of the broken level
Ensure you’re not entering too far from the structure for better R:R
You’re now trading with momentum, not guessing against it.
Step 6: Place a Thoughtful Stop Loss
Structure should define your risk clearly.
For long trades, place your stop below the broken swing high
For short trades, place it above the broken swing low
Avoid tight stops directly on the level — allow for retests
Let the market breathe while still protecting your capital.
Step 7: Set a Structure-Based Take Profit
With momentum and structure in your favor, plan the exit accordingly.
Use the next swing high or low for conservative targets
Aim for a 1:2 or 1:3 risk-to-reward ratio
Trail your stop if the move extends cleanly
Avoid setting arbitrary targets — follow the flow of structure
Consistency in exits builds long-term confidence.
Risk Management Tips
Always wait for structure confirmation after a MACD cross
Skip setups where the structure is messy or unclear
Avoid entering without a strong candle close beyond the level
Stick to a fixed risk percentage per trade
Don’t enter if the MACD is flat or choppy
Solid risk habits keep this setup clean and scalable.
Common Mistakes to Avoid
Entering on the MACD cross alone without structure
Using weak or minor swing points for confirmation
Chasing price far from the broken structure
Placing stops too close and getting wicked out
Avoid these, and your performance with this strategy will improve dramatically.
Quick Reference Summary
What’s Next?
The MACD Cross + Structure Break Entry Strategy gives you a high-probability way to ride momentum after price confirms it’s ready. By combining indicator-based logic with price behavior, you gain precision and clarity most traders miss.
Next up, we’ll move into the Bollinger Band + Breakout Reversal, where volatility expansion meets structure to create explosive entry opportunities.