Common Chart Indicator Settings

TonyQ

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Most traders know the standard Settings for MACD, Bollinger Bands and the RSI but may not realise that one size does not fit all.

Take the MACD standard 12/26/9 period settings. Why is this?
Instead, why not "Tune" your indicator to the Price chart? It is so easy to do.

Whatever the time frame or range of the bar, the MACD can be tuned to match past performance.
For example, on a 10 Tick Range bar for the Mini S&P, adjust the Fast and Slow settings so that their corresponding indicator lines match/cross over the Top and Bottom of the Daily Price Range.
So now the MACD is "Tuned" to the frequency of the current price movements and its a good bet that is the pattern for their future movements. So when they next line up or cross over at a peak you can be confident of a downward move next. A regular setting for the MACD for me is 5/13/8 which produces a faster picture of momentum for the shorter time scale.

Likewise with the Bollingers at 20/2 and the RSI at 14. These too can be adjusted to follow a similar pattern.

I find these adjustments provide a more accurate picture and therefore are more reliable than the bog standard.
 
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