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MACD absolute value?

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    MACD absolute value?

    I know that MACD crossover etc is used as a trading signal. Is there an absolute value of the MACD that corelates with a good signal. I see the MACD usually range betweeb -2 to +2 but sometimes as high as +4. Any ideas? Thanks.

    #2
    Hi ju1234,

    since the MACD measures momentum it depends on the product / instrument you are trading...so I guess there is no global answer to your question.

    What you can do is base a strategy on the absolute MACD values and optimize it for your timeframe and symbol to get an idea in which range optimal threshholds are to be found.
    BertrandNinjaTrader Customer Service

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