Recently, a friend asked me how to choose MACD parameters, which made me realize that many people actually have quite a few misconceptions about this indicator. Today, I want to share my thoughts on MACD parameters.

Speaking of MACD, most people use the default 12-26-9 parameters. Honestly, this set of parameters does have its advantages—strong stability, widespread use in the market, and a certain consensus effect. But I later found that the same set of parameters can’t really apply to all markets, especially in the highly volatile environment of cryptocurrencies.

I’ve tried many combinations. For example, the 5-35-5 parameters, which are much more sensitive and can catch trend reversals more quickly. When backtesting Bitcoin’s six-month data last year, the 12-26-9 only detected 7 clear signals, but the 5-35-5 showed 13. Interestingly, the 5-35-5 seems more powerful, but in reality, it also produces more noise, and many signals later turn out to be false alarms. This highlights the dilemma in adjusting MACD parameters—higher sensitivity makes it easier to catch bottoms and tops, but less stable, risking missed opportunities.

There are also other combinations like 8-17-9, 19-39-9, 24-52-18, each with its own characteristics. For short-term trading, I tend to prefer 5-35-5 or 8-17-9, but only if you’ve first validated these parameters with historical data to ensure they truly fit your trading logic. A common mistake many make is overfitting—their backtests look great because they’ve tuned the parameters to fit past market conditions perfectly, but when applied to live trading, they often fail.

My advice is this: beginners should start with the 12-26-9 and observe for a while to get a feel for MACD’s rhythm. If you find this set often produces inaccurate signals, then adjust based on your trading habits. But never change parameters too frequently—that will only confuse you. Some traders also use two MACD setups simultaneously to filter out noise, which is okay, but more signals can test your decision-making discipline.

Most importantly, there is no “best” MACD parameter. Every market and cycle is different. The key is to find the set that best matches your trading style and stick with it. Backtesting, review, and live testing are all essential steps. Don’t expect one set of MACD parameters to work perfectly in all market conditions—that simply doesn’t exist.