Of all the different combinations of moving average filters to use for a MACD oscillator, we prefer using the JMA - DWMA (double weighted moving average) combination.

JMA is ideal for the fast moving average line because it is quick to respond to reversals, is smooth and can be set to have no overshoot. DWMA is ideal for the slower line as is tends to delay reversing direction until after JMA crosses it.

In the chart below, note where JMA (cyan) crosses DWMA. The full-color oscillator underneath is a MACD that measures the difference between JMA and DWMA.

• Different time frames on a chart may produce different results.

• Please do not ask us for indicator parameter settings. Every market is different.

• Past performance of any trading system is never a guarantee of future performance.

• All trading strategies have risk and commodities/futures trading leverages that risk.