How do you combine your MACD?

 

The MACD is best used as a confirmation indicator. What this means by that is that it should be used together with other indicators to realise more its potential. The MACD has 3 major features or parameters as the case, 12 (which represents the previous 12 bars of the faster moving average) 26 (which represents the previous 26 bars of the moving average) and 9 (which represents the previous 9 bars of the difference between the two moving averages, this is plotted as a histogram. In essence when the faster moving average crosses above or below the slower moving average it indicated a new bullish or bearish trend is forming. Let us know how you combine your MACD.