GBP/USD, Fri Jan/02/2015, MACD Analysis: Bearish-Trend Strong Indication, 0.00% Fall in The Last Update

Figure-1. GBP/USD MACD (TF:D1, Fri Jan/02/2015 00:00:00)

An MACD (moving average convergence/divergence) technical analysis for GBP/USD is generated for market close at Fri Jan/02/2015 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 follow the MetaTrader version of MACD [1], and the MACD-Signal difference is presented to enrich the analysis with the price acceleration information (as presented by MACD histogram in other version [2]).

Detecting Trend Direction by MACD Sign: A negative sign of MACD bar is performed by the indicator, and it shows a sign of a bearish-trend. The yesterday closing (Thu, Jan 01) shows 0.00% (0.00 pips) drop in price from 1.55854 to 1.55854, this could be a sign that the down-trend will continue its path. With the last recorded MACD cross is detected 112 trading days ago on 07/29/2014 and confirmed by the signal cross triggered 108 trading days ago on 08/04/2014, neglecting the price acceleration/decceleration, the down-trend is expected to keep its journey.

Picturing Price Acceleration by MACD-Signal Difference: The MACD derivative analysis is applicable when the MACD-Signal crossover is selected as the trade signal. The acceleration of the price movement keeps its direction for the last 1 trading days since the previous crossing on 12/31/2014, and any long floating position should be kept until the next cross. The trend indicated by the MACD level is currently bearish while the acceleration show the reverse direction. A consistent view of this strategy would be interpreted that the down-move will deccelerate and a quick trend reversal prediction is resulted.

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: 2015-01-02 00:00:00
Optimization data:
Created time: 2018-02-21 12:51:08
Realtime: no
Private publish time: 2018-02-21 12:51:31
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