Understanding "MACD" by Iwamoto Max, Part 5 [Max Iwamoto]
Max Itsuo Motomoto Profile
Keisuke Iwamoto. As their nickname “Technical Analyst with no high school diploma,” he stands out in the analyst industry for having no formal education. Even in these days when educational background matters, he fights daily in the FX market where such things hardly matter. With the belief that “now that anyone can start FX easily, I want you to acquire skills that can keep you winning consistently,” he serves as a serial author and seminar lecturer.
*This article is a reprint and editing of an article from FX Strategy.com July 2018 issue. Please note that the market information written in the main text may differ from the current market.
Choosing the optimal parameters is important!
MACD is finally the final part. In this fifth installment, I will explain the use of MACD in a double setup.
When using technical indicators, not only MACD but any technical indicator requires selecting parameters. The values you choose can significantly change what the indicator suggests and the timing of trades, so you cannot make this decision lightly. Rather, the parameter selection is as important as choosing which indicator to use.
Incidentally, while the MACD commonly uses the values 12 (short-term EMA), 26 (mid-term EMA), and 9 (signal line) as recommended by its developer Gerald Appel, it is not widely known that he also recommends shorter combinations like 6 and 19, or longer-term combinations like 19 and 39.
