MACD-line and signal line

Discussion in 'Ask any question!' started by Malthe Gissel, Apr 4, 2020.

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  1. Malthe Gissel

    Malthe Gissel New Member

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    Hello

    I'm new to using MACD (and any technical analysis tool for that matter), and I have a question.

    I use the default values of 12,26,9 when I use MACD, but it seems like the signals change when I set my graph data to 3 months, 6 months, 1 year etc.

    I have uploaded two files clearly illustrating the difference in signals for a the S&P500 dating back 6 months and 1 year.

    Im sure there is a simple explanation, but I just dont understand why the signals are different, when the input data for MACD is 12,26,9 in both cases.

    Thank you in advance
     

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  2. OldFart

    OldFart Well-Known Member

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    @Malthe Gissel

    https://www.investopedia.com/terms/m/macd.asp

    MACD is based on time ( periods ). Depending on the time frame of your chart, they will show different indications.

    The shorter the time period, the faster the signal.
    The longer the time period, the slower the signal.

    Remember, all indicators are "lagging" indicators, which means they use past data to show a signal. That means they are not always correct.
     

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