There is no problem to do this.
Here when MACD line crosses above the zero line there is a long signal (when it crosses below the zero there is a short signal) and the opposite logic is applied for closing the position.
A same direction signal - Does nothing
An opposite direction signal - Does nothing
[Opening point of the position]
Bar Opening
Enter the market at the beginning of the bar
Base price - Open
[Opening logic condition]
MACD
The MACD line crosses the zero line upward
Smoothing method - Exponential
Base price - Close
Signal line method - Simple
Slow MA period - 26
Fast MA period - 12
Signal line period - 9
Use previous bar value - Yes
[Closing point of the position]
Bar Closing
Exit the market at the end of the bar
Base price - Close
[Closing logic condition]
MACD
The MACD line crosses the zero line downward
Smoothing method - Exponential
Base price - Close
Signal line method - Simple
Slow MA period - 26
Fast MA period - 12
Signal line period - 9
Use previous bar value - No
Here when MACD crosses the zero line we have actually 2 signals one close signal and an open one. The first signal closes the current open position and after that (at the begining of the next bar) the second signal opens a new position but in the opposite direction.
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You can do the same using "Close and Reverse" logic:
A same direction signal - Does nothing
An opposite direction signal - Reverses the position
[Opening point of the position]
Bar Opening
Enter the market at the beginning of the bar
Base price - Open
[Opening logic condition]
MACD
The MACD line crosses the zero line upward
Smoothing method - Exponential
Base price - Close
Signal line method - Simple
Slow MA period - 26
Fast MA period - 12
Signal line period - 9
Use previous bar value - Yes
[Closing point of the position]
Close and Reverse
Close all positions and open a new one in the opposite direction
The difference here is that in each MACD signal directly reverses the position.
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One more example with a "Stop Loss" level. Here the "Reversal" logic comes from
the "Reverse" logic of the opposite signal: An opposite direction signal - Reverses the position
Forex Strategy Builder v2.5.3.3
Strategy name: New
Exported on: 11/24/2007 11:52:18 PM
Market: EURUSD 1 Day
Spread: 4 pips
Swap Number: 1 pip
Intrabar scanning: Not accomplished
Interpolation method: Pessimistic scenario
Ambiguous bars: 0
Tested bars: 4723
Balance: 3044 pips
Minimum account: 0 pips
Maximum drawdown: 1591 pips
Time in position: 91 %
A same direction signal - Does nothing
An opposite direction signal - Reverses the position
[Opening point of the position]
Bar Opening
Enter the market at the beginning of the bar
Base price - Open
[Opening logic condition]
MACD
The MACD line crosses the zero line upward
Smoothing method - Exponential
Base price - Close
Signal line method - Simple
Slow MA period - 26
Fast MA period - 12
Signal line period - 9
Use previous bar value - Yes
[Closing point of the position]
Stop Loss
Exit at the Stop Loss level
Stop Loss - -200
When you want to use one and the same condition to open and close a position every time when there is a signal it shows actually two things - a closing signal and an opening signal in the opposite direction. The result is a reversal strategy.
You can experiment by setting an additional "Open long positions only" filter:
A same direction signal - Does nothing
An opposite direction signal - Reverses the position
[Opening point of the position]
Bar Opening
Enter the market at the beginning of the bar
Base price - Open
[Opening logic condition]
MACD
The MACD line crosses the zero line upward
Smoothing method - Exponential
Base price - Close
Signal line method - Simple
Slow MA period - 26
Fast MA period - 12
Signal line period - 9
Use previous bar value - Yes
[Opening logic condition]
Long or Short
Open long positions only
[Closing point of the position]
Stop Loss
Exit at the Stop Loss level
Stop Loss - -200
As a matter of fact almost there is no difference between the Entry and Exit slots. The logics are same. If you want a mirror logic of opening and closing the easiest way is to use "Close and Reverse" logic.
As you wrote:
That is, why does it not allow the use of MACD conditions to Open and the opposite MACD conditions to Close the trades?
This is exactly a reversal system. The second MACD conditions will close the position but in the same time it is an opposite opening signal.