EUR/USD, Thu Mar/22/2018, MACD Analysis: 0.82% Up Confirm An Up-Trend
For EUR/USD market close at Thu Mar/22/2018 00:00:00, an MACD (moving average convergence/divergence) technical analysis for EUR/USD is generated. The analysis computation and presentation method follow the MetaTrader version of MACD , and additional MACD-Signal difference is added to complete the analysis with the price acceleration data (as presented by MACD histogram in other version ). The indicator chart is presented in the Figure 1, showing the market data chart on the top, the MACD indicator bar and line in the middle, and the MACD-Signal difference histogram in the bottom.
Indentifying Trend Direction by MACD Sign: A positive value of MACD is shown by the indicator, and it is a sign of an up-trend. The yesterday closing candle (Wed, Mar 21), shows 0.82% (100.40 pips) step up in price from 1.22404 to 1.23408, this gives a confirmation that the bullish-trend will continue its line. With the last recorded MACD cross is produced 86 trading days ago on 11/21/2017 and confirmed by the signal cross triggered 82 trading days ago on 11/27/2017, neglecting the average price acceleration/decceleration, the bullish-trend is predicted to keep its journey.
Price Acceleration Detection with MACD-Signal Diference: This MACD histogram analysis is meaningful if the MACD-Signal crossover is chosen to trigger the trade signal. The price movement acceleration has never change its direction for 4 trading days since its cross on 03/15/2018, and the sell floating trade should be hold until the next crossover. The trend detected by the MACD level is currently bullish while the acceleration show the reverse direction. A rational view of this method would be interpreted that the up-moving will deccelerate so a fast trend reversal guess is produced.
- MACD Technical Analysis, Technical analysis with MetaTrader version of MACD
- MACD Wikipedia, Various implementation of moving average convergence/divergence analysis