Which is better a 5 13 9 or a 3 7 9 MACD

The choice between a 5-13-9 and a 3-7-9 MACD setting depends on the specific market conditions and individual trading preferences. Here's an analysis to help you decide:

1. **Understanding the MACD Settings**:
- The MACD indicator consists of two moving averages (MAs) of prices, with the difference between them forming the MACD line. The signal line is a moving average of the MACD line, typically with a shorter period, to smooth out the signals.
- The numbers in the setting represent the periods used for each moving average: the faster moving average (MACD line) and the slower moving average (signal line). For example, a 5-13-9 setting means a 5-period MA for the MACD line, a 13-period MA for the signal line, and a 9-period MA for the histogram.
2. **Impact of Changing the Settings**:
- Increasing the period of the moving averages reduces the number of trading signals generated, making the indicator smoother and potentially less responsive to short-term price movements. Conversely, decreasing the periods increases the number of signals and sensitivity to price changes, but also increases noise and potential false signals.
- The 5-13-9 setting is a common choice for day trading, as it provides a balance between sensitivity and noise, especially for trending markets.
- The 3-7-9 setting is an even more sensitive choice, which may be beneficial in certain market conditions where the trader wants to detect trends earlier or for higher-frequency trading.
3. **Market and Trader Preferences**:
- The choice of setting depends on the specific market conditions, such as the volatility, trend strength, and time frame. A more sensitive setting may be suitable for higher volatility markets or shorter time frames, while a smoother setting might be better for low-volatility or longer-term trends.
- Individual trader preferences, such as risk tolerance, trading style, and the specific trading strategy, also play a role in selecting the appropriate setting. For instance, a trader who prefers to trade more frequently and takes advantage of short-term trends might prefer the 3-7-9 setting.
4. **Conclusion**:
- If you are looking for a balance between sensitivity and noise, especially for day trading, the 5-13-9 setting is a good choice.
- If you want to detect trends earlier and are willing to accept more false signals, the 3-7-9 setting might be suitable for certain market conditions, especially for higher-frequency trading.

Ultimately, the best setting is one that works for your specific trading style, market conditions, and individual preferences. It's recommended to test different settings in a demo account or backtest to determine the most effective configuration for your strategy.