MACD is one of my favorite oscillators. You can use it in so many ways. It is possible to join MACD with many other tools. When we talk about MACD in Forex, we have standard (built-in) MACD, but I prefer MACD True (it is a custom oscillator, you have to download it). You can see the difference below:

 

Next thing you have to decide about are settings. Standard settings for MACD are 12, 26, 9. You can play with these parameters. Below there is a difference between standard MACD and MACD with longer settings:

macd-scalping2

With shorter settings, you will have faster signals, but more false ones. With longer settings, MACD works more like trend indication. As you saw before, I use MACD with longer settings joined with Stochastic as a signal oscillator. This is me, you may prefer to go with MACD and shorter settings and based your entry on MACD.

When trading with MACD you should remember that we have signal after line crosses. Another important signal is when MACD crosses 0 line.

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