AUD/USD, Fri Jan/02/2015, MACD Analysis: Bearish-Trend Confirmed, 0.00% Drop in The Last Update
Outlined in this page, an MACD (moving average convergence/divergence) analysis for AUD/USD is generated for daily close at Fri Jan/02/2015 00:00:00. The indicator chart is presented in the Figure 1, showing the candlestick chart on the top, the MACD indicator bar and line in the middle, and the MACD-Signal difference bar in the bottom. The indicator computation and presentation method uses MetaTrader version of MACD , and an MACD-Signal difference is shown to complete the analysis with the price acceleration/decceleration data (as shown by MACD histogram in other version ).
Trend Direction Indentification by MACD Polarity: A negative sign of MACD bar is recorded by the indicator, and it shows an indication of a down-trend. The yesterday closing (Thu, Jan 01) shows 0.00% (0.00 pips) fall in price from 0.81745 to 0.81745, this could be an indication that the bearish-trend will continue its path. With the last historical MACD cross is trigered 83 trading days ago on 09/08/2014 and followed by the signal cross produced 107 trading days ago on 08/05/2014, neglecting the average price acceleration/decceleration, the bearish-trend is projected to keep its slope.
Price Acceleration Detection with MACD-Signal Diference: The MACD histogram analysis is meaningful if the MACD-Signal crossover is chosen as the trade signal. The price movement acceleration has never change its direction for 5 trading days since its cross on 12/25/2014, and the buy floating position should be hold until the next flip. The trend represented by the MACD level is currently bearish while the acceleration show the reverse direction. A persistent view of this method would mean that the down-movement will deccelerate and an early trend reversal prediction is decided.
- MACD Technical Analysis, Technical analysis with MetaTrader version of MACD
- MACD Wikipedia, Various implementation of moving average convergence/divergence analysis