Which is better a 5 13 9 or a 6 13 9 MACD


Aime
The choice between a 5-13-9 or a 6-13-9 MACD setting depends on the specific market conditions and individual trading preferences. Here's an analysis to help you decide:
- 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.
- 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 signals1.
- The 5-13-9 setting is a common choice for day trading, as it provides a balance between sensitivity and noise, especially for trending markets23.
- The 6-13-9 setting is a slight modification of the 5-13-9, with a slower MACD line, which may be beneficial in certain market conditions where the trader wants to detect trends earlier3.
- 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 trends4.
- 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 6-13-9 setting1.
- 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 6-13-9 setting might be suitable for certain market conditions.
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.
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