What it measures
MACD is the difference between a 12-period and a 26-period exponential moving average. A 9-period average of that line is the signal line, and the histogram shows the gap between the two. It tells you whether short-term momentum is speeding up or slowing down relative to the longer trend.
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Starting settings by expiry
| Expiry | Settings | Signal |
|---|---|---|
| 1 min | 6, 13, 5 on 15-sec candles | Signal-line cross |
| 5 min | 12, 26, 9 on 1-min candles | Cross in direction of zero line |
| 15 min | 12, 26, 9 on 5-min candles | Cross + histogram expansion |
Starting points for testing on a demo account, not proven profitable settings.
How traders use it
- Signal-line crossovers: MACD crossing above the signal line favours calls, below favours puts.
- Zero-line filter: trade only in the direction of the side of zero MACD is on.
- Histogram shrinking towards zero warns that a move is losing strength.
Where it fails
- MACD lags: by the time it crosses, a short move may be over.
- In sideways markets it whipsaws around the zero line.
Works well with
- Exponential moving average (EMA) — Trend direction with more weight on recent prices.
- RSI (Relative Strength Index) — Momentum oscillator from 0 to 100.
FAQ
Is MACD good for 1-minute trades?
It lags on very short expiries. Faster settings help, but most traders use MACD on 5-minute expiries and longer.
ExpiryLab Editorial Research desk We open broker accounts from our target countries, test deposits and withdrawals, and log what we measure.
How this page was made: drafted with AI assistance from public sources and our own test logs, then checked and edited by the ExpiryLab editorial team. The date above shows the last check. How we test · Editorial policy