The purpose of the EQ is to correct imbalances in the frequency response of your speakers due to the properties of your speakers, the enclosures they're in, and your car's cabin. There is no universally correct EQ settings, but if you find someone with the same speakers as you they might be able to help you out. In general, most people prefer a "smile" EQ for rock music. This means that the midrange is turned down a bit and the bass and treble are turned up a bit.
My usual technique for adjusting the EQ:
1)Set everything to 0 (flat)
2)Go to each frequency and turn it all the way down, then all the way up, to see how that frequency affects the overall sound (so I know what part of the sound I'm adjusting)
3)Adjust this frequency to the point where I think it sounds the best.
Another tip I found is that if you have a subwoofer, set the crossover frequency lower than you might normally. For my home theatre, I set the crossover at 60Hz, but for the car I found that 50Hz sounds better. For the front speakers I have the Highpass set at 80Hz ideally, although for songs with a lot of bass I have to change it to 100Hz. This make vocals sound thinner but my speakers rattle from the bass if I leave it at 80Hz cutoff.