To achieve the best results in trading using **Technical Indicators**, their settings should be adjusted according to your strategy and the timeframe you are trading in.
### **Best Settings for Common Technical Indicators**
#### **1. Moving Averages (MA)**
- **SMA (Simple Moving Average):**
- **Short-term:** 9 or 20 (for day trading).
- **Long-term:** 50 or 200 (to determine the general trend).
- **EMA (Exponential Moving Average):**
- **Common Settings:**
- **9 EMA** → For fast trading (scalping).
- **21 EMA** → For day trading.
- **50 EMA & 200 EMA** → To determine long trends.
#### **2. Relative Strength Index (RSI)**
- **Standard Setting:** 14 Periods.
- **Alternative Settings:**
- **7 or 9** → For faster signals (but may be misleading).
- **21 or 25** → To avoid false signals in long trading.
- **Overbought Levels:**
- **70 (Overbought) - 30 (Oversold)** ← Most Used.
- Some traders use **80/20** for increased accuracy.
#### **3. MACD Indicator**
- **Standard Setting:** (12, 26, 9).
- **EMA 12** → Short Average.
- **EMA 26** → Long Average.
- **EMA 9** → Signal Line.
- **Alternative Settings:**
- **(5, 35, 5)** → For slower but more accurate signals.
- **(8, 17, 9)** → For day trading.
#### **4. Bollinger Bands**
- **Standard Setting:** (20, 2).
- **20 Periods** → SMA.
- **2 Standard Deviations** → To define ranges.
- **Alternative Settings:**
- **(50, 2.5)** → For long trends.
- **(10, 1.5)** → For quick volatility (scalping).
#### **5. Stochastic Oscillator**
- **Standard Setting:** (14, 3, 3).
- **%K (14)** → Main Line.
- **%D (3)** → Signal Line.
- **Alternative Settings:**
- **(5, 3, 3)** → For faster signals.
- **(21, 7, 7)** → To avoid clutter.
#### **6. Fibonacci Retracement**
- **Key Levels:**
- **23.6%, 38.2%, 50%, 61.8%, 78.6%.**
- **Add Levels:**
- **100%, 161.8%** ← To determine profit targets.
#### **7. Volume Indicator (OBV & VWAP)**
- **OBV:** Does not require settings (depends on volume and price).
- **VWAP:** Used on **Daily or Minute Charts (like 5M, 15M).**
### **Summary Table for Ideal Settings**
| Indicator | Standard Setting | Alternative Settings | Optimal Use |
|-------------|----------------|----------------|----------------|
| **SMA** | 50, 200 | 20, 100 | Trend Identification |
| **EMA** | 9, 21 | 12, 50 | Fast Trading |
| **RSI** | 14 | 7 (Fast), 21 (Accurate) | Overbought/Oversold |
| **MACD** | (12,26,9) | (5,35,5) | Trend Crossovers |
| **Bollinger Bands** | (20,2) | (50,2.5) | Volatility |
| **Stochastic** | (14,3,3) | (5,3,3) | Short-term Momentum |
| **Fibonacci** | 23.6%-61.8% | 78.6%-161.8% | Support and Resistance |
### **Tips to Improve Settings**
1. **Choose the Time Frame First:**
- **Fast Trading (Scalping):** Small Timeframes (1M, 5M) + Fast Settings (like EMA 9, RSI 7).
- **Day Trading:** 15M, 1H + Medium Settings (like SMA 50, MACD 12-26-9).
- **Long Trading:** 4H, Daily + Slow Settings (like SMA 200, RSI 21).
2. **Test the Settings on a Demo Account** before real trading.
3. **Combine Indicators:**
- Example: **EMA 50 + RSI 14 + MACD** ← Gives strong signals.
4. **Avoid Overloading:** 3-4 Indicators are sufficient, more than that clutters the chart.
### **Summary**
- **For Beginners:** Start with **SMA 50/200 + RSI 14**.
- **For Day Traders:** **EMA 21 + MACD (12,26,9) + Bollinger Bands**.
- **For Scalpers:** **EMA 9 + Stochastic (5,3,3)**.
> You can apply these settings directly on the **Binance Platform** using the built-in **TradingView** tool! 🚀
