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What is the parameter setting of monthly macd indicator?
With the increasing popularity of investors who hold stocks for a long time, the monthly MACD indicator has become an important tool to identify trends and trading signals. However, many investors are still confused when setting the parameters of MACD index. This paper will analyze it from many angles to answer the MACD index parameter setting problem of the monthly line for you.

What is the MACD indicator?

MACD (Moving Average Convergence) is a technical indicator to measure the trend of securities prices, and it is also one of the most commonly used technical indicators. It consists of two moving averages and a MACD line. The core of MACD indicator is the difference between two moving averages. Generally speaking, one is the fast line and the other is the slow line. By comparing the differences between these two lines, we can judge the changes of short-term and long-term market trends.

Calculation formula of MACD indicator:

MACD line: MACD (12,26) = EMA (12)- EMA (26)

Signal line: signal (9)= moving average (MACD, 9)

Column line: histogram (12,26,9 9) = MACD signal.

In MACD indicator, 12 and 26 are the periods of fast and slow lines, and 9 is the period of signal lines. These periods are usually called exponential parameters, and different exponential parameters will have different effects on the calculation and signal of MACD indicators, which will be introduced in detail below.

Influence of MACD indicator parameter setting

1. Length of fast line and slow line

The length of the fast and slow lines of MACD indicators usually uses 12 and 26 as the default values, which is also the most commonly used parameter setting. When setting these two parameters, you need to consider the time period and the types of securities to be observed. On the monthly chart, the influence of short-term trend is relatively small. Therefore, we can choose longer fast and slow line lengths, such as 24 and 52, in order to better capture the long-term trend.

2. The length of the signal line

By default, the signal line uses a moving average of 9 trading days. The length of signal line is usually considered as the core of MACD index parameter setting. If the length of the signal line is too short, it may lead to more error signals. If the signal line is too long, you may miss the transaction signal. In the MACD index of the monthly line, the length of the signal line can be appropriately adjusted to 13 or 2 1 in order to better find the general trend change of the signal line.

3. Length of column line

MACD column line represents the difference between MACD line and signal line. The length of the columnar line is highly sensitive to judge the deviation phenomenon and market power. In the MACD of the monthly line, the length of the column chart can be appropriately increased according to the influence of the long-term trend.

conclusion

MACD indicator is an important tool for market trend analysis. By setting the index parameters reasonably, we can capture the market signal more accurately. In the setting of MACD index of monthly line, the length of fast line and slow line, the length of signal line and the length of column line need to be adjusted according to the specific situation. In operation, it needs to be constantly summarized and adjusted to adapt to different market environments.