Determine the appropriate parameters: the difference between the fast line and the slow line will form a histogram. It is very important to determine the optimal time period of these moving averages and histograms. Some traders use 12, 26 or 9 as the default settings for these periods, but different markets, assets and time frames may require different settings. So, you can try to adjust it to get the best effect.

Determine which signals are valid: MACD indicator will send out three kinds of cross signals, namely, the slow line goes up through the fast line (golden cross), the slow line goes down through the fast line (dead cross) and the histogram color changes from negative to positive (red column). When using MACD, we should use noise interference to remove the wrong signal and emphasize the correct signal.

Combination with other indicators or analysis methods: MACD can be used in combination with other technical indicators and trend analysis tools, such as support level, resistance level, moving average and bollinger Band. Combining multiple indicators can improve the analysis accuracy or reduce the risk, and you can choose the appropriate combination method according to your own preferences and risk preferences.

Managing risk: Although MACD is a useful trading tool, it still has some limitations and shortcomings. Therefore, we must have sufficient risk management awareness and ability in trading, and we cannot make trading decisions only by its indicators when using MACD. It is suggested to cooperate with risk management strategies such as stop loss orders and risk control rules to ensure the safety and stability of transactions.