In this article, we developed one test, created one intraday profitable strategy, and then varied the values of the MACD settings parameters in several combinations. Our indicator is based on previous highs and lows, but you can use Pivot points or Fib levels. Admirals SA (Pty) Ltd is an authorised financial services provider (FSP51311) registered at the Financial Sector Conduct Authority. It can be observed that the ratio of each time frame to the next one is 4:1, in which the 4-hour and 1-hour MACDs function as trend filters, while the 15-minute MACD provides the buy and sell signals. MACD buy signals are generated when the MACD line crosses above the signal line. These patterns could be applied to various trading strategies and systems, as an additional filter for taking trade entries. These are the typical settings used by traders when entering the market but what about when it is time to exit the market? Therefore, a true momentum strategy needs to have solid exit rules to protect profits, while still being able to ride as much of the extension move as possible. MACD SMA is a parameter within the MACD moving average itself. So whenever I get a crossing of the MACD over the MACD signal line, thats a red arrow or a green arrow. The MACD can be used for intraday trading with the default 12, 26, 9 settings. The MACD is an indicator that allows for a huge versatility in trading. Whenever a new trend is discovered, it would be the last line to be the first to react, and it would eventually cross to the slower line. Specifically, the value for the long-term moving average is subtracted from the short-term average, and the result is plotted onto a chart. Instantly restores every 90 days from subscription date. The settings for the MACD histogram are the defaults used in most charting platforms: EMA = 12, second EMA = 26, signal line EMA = 9, all using closing prices. Depicted: AUD/USD Hourly Chart - Disclaimer: Charts for financial instruments in this article are for illustrative purposes and do not constitute trading advice or a solicitation to buy or sell any financial instrument provided by Admirals (CFDs, ETFs, Shares). The MACD Indicator may be utilized for intraday trading accompanied by the neglect settings (12,26,9). When a squeeze is formed, wait for the upper Bollinger Band to cross upward through the upper Keltner Channel, and then wait for the price to break the upper band for an entry long.