The above chart shows the breakout (crossing above the horizontal line) that confirms the signal. Immediately after the breakout (blue shaded box), the first pullback begins, which went below the horizontal line. When it turns back up with the bar closing higher than the previous bar's high, that is the long entry. Note the sequence of the price action: higher high followed by higher low, then higher high, higher low, and so on. This is typical of a bullish trend.

Where to exit? Each trader has his or her own style or system to determine the exit: either by an absolute point system, percentage system, indicator signal or price action signal. Here are two alternatives:

1. For longs, when prices make lower high or lower low, this is indication the market is about to consolidate or reverse. An exit here is prudent. For short, when prices make higher high or higher low, it’s time to exit.
2. For shorts and longs, when the indicator makes the opposite divergence signal, the trader can consider exiting with or without price action confirmation. Either alternative is an acceptable exit point.
 

The blue shaded box in the above chart shows the second exit strategy: exiting from divergence signal in the opposite direction without price confirmation.

With a little patience, the indicator can pinpoint where the next opportunity is approaching. Being prepared is paramount. There is one precise entry and wait for the market to play itself out fully to truly profit, raising the reward/risk ratio much higher. Using the MACD delta indicator is simple and doesn’t require much time and maintenance to profit from the market. MACD delta is available using SwingTracker software.