Recently, many traders have been struggling with adjusting MACD parameters, and in fact, this issue is more common than you might think.

To be honest, there is no absolutely optimal parameter combination for the MACD indicator itself, but how to adjust MACD parameters according to your trading style is the real threshold.

Why do so many people use the standard 12-26-9 combination? Mainly because it is the most stable. The fast line EMA(12) captures short-term momentum, the slow line EMA(26) looks at long-term trends, and the signal line EMA(9) filters out noise. This setup works well for stock daily charts and forex 4-hour charts, but it struggles a bit with the high volatility of the crypto market.

I have tried the 5-35-5 parameters myself; the response is indeed much faster, allowing for more precise detection of short-term upward movements. But the downside is that signals are more frequent, and noise is abundant. It’s common to see a golden cross followed immediately by a reversal. In comparison, 8-17-9 falls between the two, suitable for traders who want sensitivity but don’t want to be disturbed by false signals.

I previously conducted a comparative experiment, backtesting Bitcoin’s half-year daily data with both 12-26-9 and 5-35-5. The 12-26-9 showed 7 clear signals, of which 2 were valid golden crosses, and 5 failed. The 5-35-5 generated 13 signals, with 5 valid upward or downward movements, and the rest minor fluctuations. The data suggests that 5-35-5 produces more signals, but the success rate doesn’t significantly improve; in fact, it requires stronger mental resilience to handle the frequent false signals.

The biggest pitfall when adjusting MACD parameters is overfitting. To make backtest results look good, many people deliberately tune parameters to fit past trends, but the live trading results are often disastrous. It’s like looking at the answer key while taking a test—completely useless as a reference.

My advice is: beginners should first use 12-26-9 for a period to observe and familiarize themselves with MACD logic before considering adjustments. If you are a short-term trader, you can try 5-35-5 or 8-17-9, but be sure to thoroughly backtest these on historical data to confirm that these parameters truly align with your entry and exit logic. For long-term swing trading, 19-39-9 or 24-52-18 tend to be more stable.

Most importantly, once you choose a set of parameters, be patient and observe long-term without frequent changes. MACD parameter adjustment should be based on market characteristics and personal habits, not just copying what others use. Some traders monitor two MACD setups simultaneously to filter noise, which is also acceptable, but it increases signal frequency and makes judgment more difficult.

Ultimately, MACD is just an auxiliary tool. The best parameter combination is the one that makes you comfortable trading. Instead of obsessing over the parameters themselves, spend more time on backtesting and review, so you can truly understand the logic behind MACD parameter adjustments.