Recently, I’ve been studying the adjustment of MACD parameters and found that many traders have some misunderstandings about this indicator. I want to share some insights with everyone.

Speaking of MACD, most people use the default 12-26-9 parameters. This setting is indeed quite stable, but the problem is it may not be suitable for everyone. The fast EMA (12) captures short-term momentum, the slow EMA (26) looks at long-term trends, and the signal line EMA (9) filters out noise. Theoretically, it’s perfect, but in highly volatile markets like cryptocurrencies, sometimes the response is still a bit slow.

I’ve tried several different MACD parameter combinations. The 5-35-5 set is the most sensitive for short-term traders, allowing quick detection of trend reversals, but the downside is it also produces more noise and false signals. The 8-17-9 is suitable for markets with more fluctuation, 19-39-9 leans toward medium to long-term, and 24-52-18 is best for long-term investors. The key is to choose based on your trading style.

I previously conducted an interesting backtest, comparing MACD performance on Bitcoin daily charts in the first half of 2025. Using the 12-26-9 parameters, there were 7 clear signals in half a year, of which only 2 were valid golden crosses, and 5 failed. With the 5-35-5 parameters, the number of signals doubled to 13, with 5 valid signals and 8 failures. It looks like more signals, but the success rate didn’t significantly improve. In fact, because it reacts too quickly, sometimes profits are eaten up by false signals.

Here, I want to warn about a common pitfall: overfitting. Many people adjust MACD parameters to fit past market data perfectly, and backtest results look excellent. But once they go live, they often lose money. The reason is simple: markets change. The same set of parameters can perform very differently across different cycles and market environments.

Therefore, my advice is: beginners should first use the default 12-26-9 for a period, observe and get a feel for it before considering adjustments. If you decide to change parameters, be sure to backtest with historical data to see if it aligns with your trading logic. Most importantly, avoid changing parameters too frequently. Some traders use multiple MACD settings simultaneously for validation, which is also a good idea, but as signals increase, your decision-making complexity also rises.

There is no absolute best MACD parameter; the key is to find the one that suits your trading habits. Short-term traders can try 5-35-5 or 8-17-9, but remember, higher sensitivity means more noise—that’s an eternal trade-off. Once you select your parameters, it’s recommended to observe long-term and avoid frequent changes, as constantly tweaking can lead you to be driven by the market rather than your strategy.