EUR/USD, Fri Mar/23/2018, MACD Analysis: -0.33% Drop in A Bullish-Trend

Figure-1 EUR/USD MACD (TF:D1, Fri Mar/23/2018 00:00:00)

A moving average convergence/divergence (MACD) analysis for EUR/USD is generated for market close at Fri Mar/23/2018 00:00:00. The indicator plot is depicted in the Figure 1, showing the price plot on the top, the MACD indicator bar and line in the middle, and the MACD-Signal difference plot in the bottom. The analysis computation and presentation method complies with MetaTrader version of MACD [1], and additional MACD-Signal difference is added to complete the analysis with the price acceleration/decceleration representation (as seen in MACD histogram in other version [2]).

Indentifying Trend Direction by MACD Sign: A positive sign of MACD is shown by the indicator, and it shows a prediction of a bullish-trend. The last closed bar (Thu, Mar 22) shows -0.33% (-40.30 pips) drop in price from 1.23408 to 1.23005, but always keep in mind that this behavior is normal since this indicator is working in averaging method. With the last recorded MACD cross is detected 87 trading days ago on 11/21/2017 and followed by the signal cross produced 83 trading days ago on 11/27/2017, disregarding the price acceleration/decceleration, the bullish-trend is predicted to continue its path.

Trading on Price Acceleration with MACD-Signal Diference: This MACD derivative analysis is applied if the MACD-Signal crossover is used as the trading signal. The acceleration of the price movement has never change its direction for the last 5 trading days since the former crossing on 03/15/2018, and the short floating trade should be held until the next flip. The trend deducted by the MACD value is currently bullish but the acceleration show the opposite direction. A consistent view of this strategy would mean that the bullish-move will deccelerate and a quick trend reversal forecast is decided.

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: 2018-03-23 00:00:00
Optimization data:
Created time: 2018-03-23 00:00:05
Realtime: yes
Private publish time: 2018-03-23 00:00:14
Analysis Model Summary
First created: 2018-02-21 12:35:38
First data: 2015-01-05 00:00:00
Historical data since: 2018-02-21 12:35:38
Realtime data since: 2018-02-22 00:00:00
Latest data: 2018-03-23 00:00:00