AUD/USD, Thu Mar/22/2018, MACD Analysis: 1.10% Gain While Trending Down

Figure-1 AUD/USD MACD (TF:D1, Thu Mar/22/2018 00:00:00)

For AUD/USD market close at Thu Mar/22/2018 00:00:00, an MACD (moving average convergence/divergence) technical analysis for AUD/USD is generated. The indicator chart is presented in the Figure 1, showing the market data chart on the top, the MACD indicator plots in the middle, and the MACD-Signal difference bar in the bottom. The parameter computation and presentation method follow the MetaTrader version of MACD [1], and an MACD-Signal difference is added to enrich the analysis with the price acceleration information (as seen in MACD histogram in other version [2]).

MACD Sign as Trend Direction Detection: A negative sign of MACD value is performed by the indicator, and it shows an insight of a down-trend. The yesterday market closing (Wed, Mar 21), showing 1.10% (84.60 pips) step up in price from 0.76820 to 0.77666. With such characteristic, we should remember that it is possible since MACD indicator is based on averaging method. With the last historical MACD cross is detected 21 trading days ago on 02/20/2018 and confirmed by the signal cross detected 21 trading days ago on 02/20/2018, disregarding the average price acceleration/decceleration, the down-trend is predicted to keep its slope.

MACD-Signal Difference as Price Acceleration Outline: The momentum change analysis is meaningful if the MACD-Signal crossover is chosen to trigger the buy/sel signal. The price movement acceleration keeps its direction for 2 trading days since its cross on 03/19/2018, and the short floating position should be hold until the next cross. The acceleration direction (detected by the sign of the value) and the current trend represented by the MACD level show that both acceleration and the trend move in the same direction, so a strong bearish-trend is indicated.

REFERENCES

  1. MACD Technical Analysis, Technical analysis with MetaTrader version of MACD
  2. MACD Wikipedia, Various implementation of moving average convergence/divergence analysis

Presented Analysis
Data time: 2018-03-22 00:00:00
Optimization data:
Created time: 2018-03-22 00:00:03
Realtime: yes
Private publish time: 2018-03-22 00:00:12
Analysis Model Summary
First created: 2018-02-21 12:55:06
First data: 2015-01-02 00:00:00
Historical data since: 2018-02-21 12:55:06
Realtime data since: 2018-02-26 00:00:00
Latest data: 2018-03-23 00:00:00