Which MACD settings are best for effective trading?

Here are 10 MACD settings for effective trading that traders worldwide have recognised and praised. Standard (12, 26, 9): This is the default MACD setting and is widely used by traders. It’s a well-balanced setting that provides reliable signals in most markets.

What MACD setting should I use?

For instance, a 6, 13, 4 setting might be a better fit, but always remember – the higher the frequency of trading signals, the higher the risk. It’s also a good idea to use combinations of different settings. Similar to looking at chart patterns on different time frames, multiple MACD settings can help paint a better picture.

Should I open long positions if the MACD is below the zero line?

As a general rule of thumb, if the MACD is below the zero line, do not open any long positions. Even when the trigger line crosses above the MACD line. Conversely, if the MACD stock indicator is above the zero line, do not open any short positions. Even when the trigger crosses below the MACD line.