There are no best parameters for MACD. Many people just use the standard: 12, 26, and 9. Mostly because they do not understand what it is calculating and how tuning the parameters affect the indicator. Of course there are others who do, but I am sticking to the majority.
The question is, should you change the default MACD parameters if the vast majority of the trading and investing population also use the default?
Obviously if it is a new indicator that you are using, then stick to the default and do not use it for any decisions until you are familiar with it’s behavior. Otherwise it is up to you.
In most cases, there is nothing wrong with being in the majority with the default indicator values.
Download MACD Trading Systems
Multi Bollinger Bands Stop with Kinjun Sen and MTF MACD
The strategy uses four BBands Stop indicators and some pretty well known custom indicator. In this strategy it ( BBands Stop indicators ) will be used primarily as a trend identifier. We will only take trades in the direction of the trend so BUY in an uptrend and SELL in a downtrend.
And MACD is one of the most reliable indicators. Although we do not believe in using any indicators in our own trading and we always use the candlesticks charting and Bollinger Bands Stop to find the trade setups, still we believe that MACD is a strong indicator specially for novice traders who are used to get in and out of the market too early.
MACD is a lagging indicator and its delay makes you be patient, not to rush to enter the market or get out of it too early.
Forex MACD Divergence Trading
This Works on All Time Frame MACD divergence trading system is based on two divergence indicators and works on the all time frame. Here I show how it work at the time frame 30 min. Best trading session: London and New York.
- Sweet Spot,
- MACD Fisher,
- FXCX Divergence indicator (5,13,21,),
- MACD Divergence indicator (12, 26 9),
- Doda Stochastic indicator ( 5,13, 5 setting for 5 min and 15 min time frame, for other time frame the setting is 5, 8, 5).