GBP/USD, Fri Mar/23/2018, MACD Analysis: bullish-Trend Excercised, -0.33% Fall in The Last Closing

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

Reported in this page, an MACD (moving average convergence/divergence) analysis for GBP/USD is generated for market close at Fri Mar/23/2018 00:00:00. The analysis computation and presentation method complies with MetaTrader version of MACD [1], and the MACD-Signal difference is shown to enrich the analysis with the price acceleration information (as shown by MACD histogram in other version [2]). 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.

Indentifying Trend Direction by MACD Sign: An above-zero of MACD is shown by the indicator, and it shows a sign of a bullish-trend. The last closed bar (Thu, Mar 22) shows -0.33% (-47.00 pips) decrease in price from 1.41406 to 1.40936, but we should be aware that this characteristic is normal since this indicator is based on averaging method. With the last historical MACD cross is produced 6 trading days ago on 03/14/2018 and followed by the signal cross produced 1 trading days ago on 03/21/2018, disregarding the price acceleration/decceleration, the bullish-trend is expected to keep its slope.

Price Acceleration Identification with MACD-Signal Diference: The MACD derivative analysis is meaningful in case the MACD-Signal crossover is chosen to trigger the trade signal. The acceleration of the price movement keeps its direction for the last 7 trading days since the previous crossover on 03/13/2018, and any long floating position should be kept until the next crossing. The acceleration direction (indicated by the sign of the level) and the current trend indicated by the MACD level show that both acceleration and the trend get the same direction, so a strong up-trend is in the run.

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 00:00:06
Realtime: yes
Private publish time: 2018-03-23 00:00:16
Analysis Model Summary
First created: 2018-02-21 12:51:08
First data: 2015-01-02 00:00:00
Historical data since: 2018-02-21 12:51:08
Realtime data since: 2018-02-26 00:00:00
Latest data: 2018-03-23 00:00:00