Actually, many people have a problem when using MACD: the standard 12-26-9 parameters always seem to be just a little off, as if they can never quite catch the market at the right moment. I was the same—until I later realized that the choice of MACD parameters really needs to be based on your trading style.

First, let’s talk about why most people use the 12-26-9 MACD parameters. This set is indeed quite stable. The fast line EMA (12) reflects market changes over the past two weeks, the slow line EMA (26) shows the momentum trend over the past month, and the signal line EMA (9) is used to filter out short-term noise. Most importantly, because these are the default values, a kind of “consensus” forms in the market. When key signals appear, they draw the attention of a large number of investors, and the reference value of the signals increases.

But the issue is this: for a high-volatility market like cryptocurrencies, or for traders who like short-term trading, 12-26-9 may be too smooth and can’t really capture trends in smaller time cycles. At that point, you need to consider adjusting the MACD parameters.

I’ve tried several different parameter combinations. 5-35-5 reacts the fastest and can precisely capture short-term trends, but it also produces the most noise. Signals appear frequently, yet the failure rate is high. 8-17-9 is suitable for 1-hour forex charts or markets with larger fluctuations. 19-39-9 is geared toward medium- to long-term cycles and can effectively filter out most noise. 24-52-18 responds the slowest, with trends that are more obvious, making it suitable for long-term investors analyzing weekly or monthly charts.

In plain terms, it’s a trade-off: the higher-sensitivity MACD parameters can catch trends more quickly, but they also produce more false signals. The lower-sensitivity parameters make trend judgment more reliable, with less noise, but the signal frequency also decreases.

I once compared them using Bitcoin’s daily data over half a year. During that six-month period, 12-26-9 produced 7 clear signals: after 2 successful golden crosses, prices rose successfully; the remaining 5 were invalid. With the 5-35-5 MACD parameters, signals appeared 13 times, with 5 effective signals—but that also meant more losing signals. In the April 10 rally, both sets caught the move; it’s just that the death cross from 5-35-5 came earlier, so the profit ended up being less than 12-26-9.

After many people adjust MACD parameters and find the results are good, they start to become obsessed with finding the “best parameters.” This is actually a misconception. Different markets and different timeframes vary a lot, so a single parameter set can hardly perform perfectly in all situations. Even more dangerous is overfitting: deliberately adjusting parameters to fit past price action, resulting in beautiful backtest data but distorted real-world performance.

My suggestion is to choose a MACD parameter set and observe it over the long term without changing it frequently. If the performance hasn’t been good recently, then consider adjusting. When adjusting, remember to backtest and review first—confirm that the new parameters truly match your trading logic, instead of just fitting past data.

For beginners, start with 12-26-9. This set is easy to get started with and is the most widely applicable. For short-term trading, you can try 5-35-5 or 8-17-9, but you must backtest and verify the results before using real money. Some people also monitor two sets of MACD parameters at the same time to filter noise—this is also possible, but more signals means the decision-making becomes more difficult.

After all, there is no absolute “best” MACD parameter. The key is to find a combination that fits your trading style. Remember: indicators are only auxiliary tools. Even the most perfect MACD parameters can only help you judge trends better—the final trading decisions still depend on your own experience and risk management.