Stock Markets Exposed
When using the MACD as a trading tool, why are the defaults 12- and 26-day moving averages? Thanks?
My firm are beginning to make use of technical analysis for trading purposes, and the MACD is one of them. The thing is, the default exponential moving averages (EMA) are 12- and 26-day, which doesn't work for all the stocks I cover. My main questions are, why are 12- and 26-days the defaults, and also, how do you decide which trading day EMA to use when the defaults don't work for a particular stock? Thanks!!
Public Comments
- u can change it see more charts more on my blog
- Not sure why the 12-26 day moving average but one tip I can give you about MACD, (I use it to trade the S&P mini contract) is that it does not work in a sideways market, you will drive yourself crazy and go broke chasing that thing when the market moves sideways. (Using a 5 min chart) Try using MACD and Key Reversal up and down, that is a good sanity check. Good luck!
