Is there an 'ideal' time frame for MACD?

[newspreadbetter]

Please excuse my newbie question, have just had a few hours self teaching online about MACD and divergence, and enjoying, and taking in what I've read and watched so far. My question, is there an ideal time frame on the chart for using MACD?

 

[malaguti]

Please excuse my newbie question, have just had a few hours self teaching online about MACD and divergence, and enjoying, and taking in what I've read and watched so far. My question, is there an ideal time frame on the chart for using MACD?

there isn't an ideal timefrane to be honest. you will get divergence on any time frame and that divergence can go on and on. If you were to backtest however using the indicator as an entry criteria, the daily and weekly do produce results that are better than average. I never found particularly good results backtesting lower time frames
Also trading a macd cross in the direction of the higher macd cross didn't necessarily produce better results. As an entry its better than most systems but I would combine it with a different exit criteria if I were you if you were going down that route

hope this helps

 

[newspreadbetter]

Many thanks malaguti for your help. Have spent a few hours on it today and the longer time frame charts do read better with MACD like you said.

What type of indicator would you use for shorter time frames? I'm new to spreadbetting and until now have always scalped, anywhere between a few minutes and an hour or so.

Thanks again

 

[malaguti]

Many thanks malaguti for your help. Have spent a few hours on it today and the longer time frame charts do read better with MACD like you said.

What type of indicator would you use for shorter time frames? I'm new to spreadbetting and until now have always scalped, anywhere between a few minutes and an hour or so.

Thanks again

no problem, with regard to shorter time frames (or even longer to be honest) I only trade with 1 indicator, just one simple moving average and take a note of highs and lows and basically go with the trend
I don't use indicators to trigger entries if that makes sense..a break of a high to go long, break of a low to exit and the moving average just gives context to the highs and lows
often use P&F also but these days longer time frames and the above I mentioned
hope this all makes sense, let me know if you need me to explain anything

 

[NVP]

Faster (lower) macs and ma = more chop

I agree with mags......find a nice compromise setting and then go in with supporting pa signals

The TF is an interesting one and I agree to a certain extent that higher TF seem to indicate more predictable and better results in most forms of trading.....

However that's not going to pay the rent regarding daily volume of trades required unless you allocate unrealistic stake levels (ie high % of cap base) to trades ....not recommended

Catch 22

N

 

[Fugazsy]

I agree with Mala divergences in daily and weekly can be very powerful.

In intraday try a longer setting as with 38,120,20,1.1 and see how it feels, remember it is only an indicator, when combined with technical levels can give better results.

You may want to have a look at this, I think is a combination of BB and MACD:

http://www.nexgent3.com/Flash Quiz ...on Two Flash/T-3 Macds Section Two Flash.html

just give any names to get in.

Fugs

 

[wackypete2]

try using the MACD histogram for smarter entries. Set stop above the higher of the 2 previous candles.

Peter