GBP/USD, Thu Mar/22/2018, MACD Analysis: MACD Signal Cross is Detected, Right Moment to Trade
For GBP/USD market close at Thu Mar/22/2018 00:00:00, a moving average convergence/divergence (MACD) analysis for GBP/USD is generated. The analysis computation and presentation method uses MetaTrader version of MACD , and additional MACD-Signal difference is added to add the analysis with the price acceleration representation (as seen in MACD histogram in other version ). The indicator plot is depicted in the Figure 1, showing the candlestick plot on the top, the MACD indicator bar and line in the middle, and the MACD-Signal difference histogram in the bottom.
MACD Polarity as Trend Direction Detection: A more than zero of MACD level is performed by the indicator, and it shows a prediction of a bullish-trend. The recent closing candle (Wed, Mar 21), shows 1.03% (144.80 pips) step up in price from 1.39958 to 1.41406, this gives a sign that the bullish-trend will continue its line. The MACD signal zero crossing is produced on the last closing, and it can be treated as confrmed buy signal, so now is the right moment to buy the GBP/USD for those who use the signal cross as the trading trigger.
Price Acceleration Detection with MACD-Signal Diference: The momentum change analysis is meaningful if the MACD-Signal crossover is used to trigger the trade signal. The price movement acceleration keeps its direction for 6 trading days since its flip on 03/13/2018, and any long floating trade should be hold until the next cross. The acceleration direction (represented by the sign of the level) and the current trend detected by the MACD value show that both acceleration and the trend get the same direction, so a strong bullish-trend is expected to continue.
- MACD Technical Analysis, Technical analysis with MetaTrader version of MACD
- MACD Wikipedia, Various implementation of moving average convergence/divergence analysis