MACD stand for ma convert/diverg but they also throw in the MA of the first 2 MAs, I think the third MA divert the attn away from convert/diverg spirit. I use the first 2 MA (3,35) only.
I use the 3 10 16 as well. Although I don't use much in the way of indicators, I have found that a quick glance at a MACD with those settings is usually worth my time.
Okay then here are a couple more resources for MACD First you can check out the commentary from Tom Bierovic. He has a site (I don't know the URL) and he has written a few books on the subject. Second, you can search here on ET. Search on the handle "AMT4SWA" and in the keyword box type in "MACD". Good luck, Steve
If, and I do mean IF,you're looking for an entry or an addition to scale into outside of a consolidation or a C from an A B C wave down use 5,34,1 Use Stops to enter and exit. I've used this also to bracket a buy stop If I'm away from my station during trading hours. I'll approximate a specific range of motion from resistance and place my order slightly above that point. Baring a gap-up, if the stock breaks out it will go through my order, trigger the buy then travel to my first exit target. Tailor the 5,34,1 toward your own instruments charastics and liquidity. Adjust the exits to comply with your own risk tolerance. Disclosure: Credit for these settings goes to Andy Skinner.