It is extremely important to understand pullbacks, consolidation, and histograms when using this custom MACD strategy. As seen here we have a buy signal that is right below the main line. We buy this and sell at the first sell signal that appears under main line. This also indicates a pull back opening up a great buy opportunity. You can predict the pullback by analyzing the histogram. If there is no shaded bars it will pullback at the main line to a buy signal. As seen in the chart we have consolidation that leads to shaded bars which will indicate your MACD line will cross up into profit. Sharp turns and parallel lines indicate a strong change in trend.
