Recently, many people are still struggling with how to set up MACD, but actually, this question itself is asked incorrectly. Many believe there is a "perfect" MACD parameter, but in reality, there isn't. Having used MACD for so many years, my biggest insight is: the parameters that suit you are the best parameters.

Let's start with the most common default values: 12-26-9. This set of parameters does have its advantages—strong stability, the fast line EMA (12) captures short-term momentum, the slow line EMA (26) observes long-term trends, and the signal line EMA (9) filters out noise. Because everyone uses this, a certain consensus effect forms in the market, and during key signals, many people pay attention, which actually increases the reference value of the signals.

But for high-volatility markets like cryptocurrencies, 12-26-9 can sometimes be too slow to react. I’ve seen many short-term traders miss opportunities because the parameters aren’t sensitive enough. At such times, adjustments should be considered.

Common adjustment options are roughly like this: if you want faster response, try 5-35-5 or 8-17-9. These two sets can catch trends more quickly but also generate more noise; if you prefer medium to long-term signals, use 19-39-9 or 24-52-18, which produce fewer signals but are more reliable. When optimizing MACD parameters myself, I choose based on the trading cycle. For example, daily charts usually suffice with 12-26-9, but for hourly charts, I might consider 5-35-5.

Last year, I tested Bitcoin data over half a year (January to June 2025) using 5-35-5, and found that the number of signals indeed doubled—from 7 to 13. But this also meant more false signals. Interestingly, during the upward surge on April 10, both sets caught the move, but the death cross with 5-35-5 came earlier, which actually resulted in less profit than 12-26-9.

This brings up the most common pitfall in MACD parameter optimization: overfitting. Many people, during backtesting, deliberately adjust parameters to perfectly fit past market conditions. It’s like looking at the answer key while taking a test—no matter how beautiful the backtest data looks, it’s useless if it fails immediately in live trading.

My advice is this: beginners should first use 12-26-9 for a period to observe and get used to it. Only after that, consider adjusting. If you decide to change parameters, make sure to do thorough backtesting, but be careful not to fall into overfitting traps. Once you find a set of parameters that fit your trading style, stick with them for a while—don’t switch frequently. Some traders compare two MACD setups simultaneously, which is fine, but more signals also mean increased difficulty in judgment.

Finally, I want to say that MACD is just a tool, and parameter adjustment is merely part of optimizing that tool. What truly matters are your trading strategy and risk management. No matter how perfect the MACD optimization is, it can’t replace discipline and patience.