Settings for EMA and MACD

Discussion in 'Technical Analysis' started by jasrlew, Jul 11, 2003.

  1. jasrlew


    I trade once a day and try and find a significant breakout. I'm using 25 for the EMA, anyone have a good setting for MACD to compliment the EMA? Thanks!
  2. jjordan


  3. bubba7


    You (25) and jjordan (12, 26, 9)are bridging.

    To trade the daily cycle, you need a shorter duration for indicators.

    When you do analysis in the evening on daily charts, you are running more than a day behind in picking off BO entries.

    What you want to do is get a short list of stock is that will BO the following morning. this is done by using a leading indicator of price.

    When you have your am list, you then watch a leading indicator of price to see just when the price will BO.

    you can place an order for the market to come to on BO and then ride the cycle.

    To use your approach or JJordan's will not suffice.
  4. jjordan


  5. bubba7


    All of our charts move RT with the market. The defaults on the indicators that you use are not working for making money as they mover in real time with the market.

    People use indicators to get signals to make money.

    your default setting will not give signals to people.

    If they donot get signals they cannot make money.

    Bridging is a TA term used by people to describe "jumping" over making money and missing making money.

    Your stuff jumps over money making.

    you stuff doesn't make money from possible signals because your defaults are not correct. Things changed after the PC was invented. The defaults have changed since the PC was invented.

    Good luck.
  6. funky


    for intraday trading, i would give 13,5,6 a try. much clearer and more precise. i used to use a 34 ema, but i found that to be insignificant compared to using a 5/13/20 sma setup. the 5 sma gives you a price guide. NEVER place an order far away from this line. always try to place an order at the line if possible (here's an example for you...take a look at a failed breakout vs. a successful breakout -- notice how the 5 sma 'guides' the successful breakout, whereas the failed breakout is far away from the 5 sma???) the 13 sma gives you an intermediate signal to the strength of the trend (again, take a look at the end of a trend and you will see how price starts to push through the 13 sma -- this is your signal to get out!), and often 'catches' price in a reversal (when a trend reverses, watch how price crosses the 20 sma and then comes back over and gets 'caught' by the 13 sma before thrusting in the new direction). and finally the 20 sma gives you a great confirmation indicator of the direction of the trend (although you should use the next higher timeframe for direction).

    in the end, you will realize that it is not the system that gets you there, its your discipline to follow that system. YOU have to be able to TRUST your system. find something that you can trust -- something that seems 'clear' to you, and follow it religiously. there is no 'trick' or magic set of indicators to making money trading -- most new traders fail to ever realize this.

    good luck!
  7. Optimize your MA's and MACD's and you'll find a good curve-fit for your parameters.

    It will eventually lose money anyways, but if u know when to quit it will make u some money.

    Good Luck.

    trend :)
  8. jjordan


    I still don't think the MACD setting matter that much. I originally stated the default 12,26,9 is fine. I do know that you can get some fast MACD signals. so if your trading a default macd on a 2min chart you can and will make money. You could have caught todays bounce with the slowest of macd settings or no MACD.

    Simple MA's have always been good enough for me.<g>
    Some people like to trade only on price.
  9. maxpi


    Some traders use different MACD settings for entries and exits, shorts and longs.
  10. standard settings ?

    standard for who ?

    the settings i was introduced to years ago are (3,10,16), simple moving averages . . . . and just the lines please

    whatever you do use, you can't be fiddling with it . . . . set it and leave it, or else you're just fooling yourself

    and the ema that compliments very well, is the 20

    for what its worth,
    #10     Aug 9, 2003