Best MACD setup for significant demand
7/22/2025 11:16am
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The deep research logic is organized as follows:
Okay, let's tackle this question about the best MACD setup for significant demand. The user is interested in identifying when there's strong buying pressure, which is crucial for their tech-focused portfolio. First, I need to recall the references provided.
Looking at the references, there are several articles discussing MACD settings. For example, Reference 2 mentions adjusting MACD for market conditions, suggesting shorter periods for high volatility. Reference 8 talks about day trading setups, recommending faster parameters like 8-17-9. Reference 10 highlights Linda Raschke's settings, which are 3-10-16 for scalping.
The user's profile shows they're into tech stocks, which can be volatile. So, a setup that's sensitive to quick price changes would be ideal. The default 12-26-9 might be too slow for their needs. Maybe a combination of faster EMAs and a shorter signal line.
Also, the user mentioned using MACD with other indicators. References 12 and 32 suggest combining MACD with volume indicators like OBV. That makes sense because volume confirmation can validate the strength of the demand.
I should structure the answer by first defining MACD, then discussing the optimal settings for capturing significant demand. Including examples from the references, like the 5-35-5 setup for small-cap stocks or the 3-10-16 for scalping, would be relevant. Also, mentioning the importance of context, such as market volatility and asset class, aligns with the user's interest in tech and AI stocks which might have different volatility profiles.
Need to ensure the answer is comprehensive but not just listing data. The user wants a setup that works, so explaining why certain parameters are better and how to apply them in real scenarios would add value. Also, including a table with different setups and their use cases would make it clear.
Finally, the conclusion should tie everything together, emphasizing the need for adaptability and combining MACD with other tools for better accuracy. Make sure to cite the references properly and include the visualization as per the requirements.
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**Conclusion**
The best MACD setup for identifying **significant demand** depends on the market context, asset class, and trading style. For **tech stocks** with high volatility (e.g., AI, Metaverse, or US Tech), a **fast MACD configuration** (e.g., 5-35-5 or 3-10-16) paired with **volume confirmation** (e.g., OBV or Volume MACD) is ideal for capturing breakout setups . Below is a detailed analysis:
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### 📊 **Optimal MACD Settings for Significant Demand**
| Parameter | Default (12-26-9) | Fast Setup (5-35-5) | Scalping Setup (3-10-16) |
|---------------------|---------------------|-----------------------|---------------------------|
| **Fast EMA** | 12 | 5 | 3 |
| **Slow EMA** | 26 | 35 | 10 |
| **Signal Line** | 9 | 5 | 16 |
| **Use Case** | Long-term trends | High volatility | Intraday/Scalping |
| **Why?** | Smooth, lagging | Sensitive to price spikes | Ultra-fast signals |
**Key Adjustments for Tech Stocks**:
- **Fast Setup (5-35-5)**: Ideal for **AI/Blockchain stocks** with rapid price movements (e.g., Ethereum , Solana ).
- **Scalping Setup (3-10-16)**: Best for **penny stocks** or high-beta tech names (e.g., ORIC, MYNZ).
- **Combine with Volume**: Use **OBV** or **Volume MACD** to confirm buying pressure.
---
### 📊 **How to Apply MACD for Demand Breakouts**
1. **Breakout Confirmation**: Look for **MACD crossover** (blue line crosses above red line) **with rising volume** .
2. **Momentum Check**: A **positive histogram** (above zero line) indicates bullish momentum .
3. **Support/Resistance**: Pair MACD with **price action** (e.g., breaking out of a wedge pattern ) for higher accuracy.
**Example Setup**:
- **Ticker**: Ethereum (ETH)
- **MACD**: 5-35-5
- **Signal**: MACD crossover (bullish) + OBV surge .
---
### 📊 **Why These Settings Work for Your Portfolio**
- **Tech Sector**: Fast-moving assets like AI stocks (e.g., CTCX, INTS) require **sensitive MACD** to catch early breakouts .
- **Risk Management**: Shorter periods (e.g., 3-10-16) reduce lag, allowing quicker exits .
- **Long-Term Focus**: Pair with **weekly charts** for strategic entry points in growth stocks (e.g., Apple concepts ).
---
### 📊 **Final Takeaway**
For **significant demand** in tech stocks, use **5-35-5 MACD** with **OBV confirmation**. This setup balances sensitivity and reliability, ensuring you catch breakouts while minimizing false signals .
Closing Price > 5-Day Moving Average; 5-Day Moving Average > 10-Day Moving Average; 10-Day Moving Average > 20-Day Moving Average; MACD Golden Cross
|code|stock code|stock name|Last Price|Last Change|Closing Price[20250721]|ma5[20250721]|ma10[20250721]|ma20[20250721]|Macd Golden Cross[20250721]|market_code|
|---|---|---|---|---|---|---|---|---|---|---|
|BH.A|BH.A.N|Biglari Holdings A|1539.29|3.6537979999999997|1539.29|1464.65|1449.159|1422.477|True|169|
|BH|BH.N|Biglari Holdings|315.91|3.634813|315.91|302.428|299.842|295.2055|True|169|
|AVGO|AVGO.O|Broadcom|288.21|1.7187830000000002|288.21|283.95|279.483|273.8095|True|185|
|AMZN|AMZN.O|Amazon.com|229.3|1.401848|229.3|225.77|224.372|221.201|True|185|
|BMO|BMO.N|Bank of Montreal|114.99|0.674138|114.99|113.968|113.732|111.6725|True|169|
|ESQ|ESQ.O|Esquire Financial|100.84|0.7694610000000001|100.84|98.932|98.7065|97.0223|True|186|
|DCO|DCO.N|Ducommun|90.12|-0.463883|90.12|88.194|86.756|85.1385|True|169|
|SLNO|SLNO.O|Soleno Therapeutics|86.97|-0.26376099999999997|86.97|86.184|84.9315|84.6253|True|186|
|TXNM|TXNM.N|TXNM Energy|57.36|0.897098|57.36|56.85|56.617|56.498|True|169|
|SNRE|SNRE.O|Sunrise Communications|57.29|1.219081|57.29|56.304|56.03|55.7255|True|185|