NZD/USD, Fri Mar/23/2018, MACD Analysis: Down-Trend Strong Indication, -0.32% Decrease in The Last Closing

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

Outlined in this page, an MACD (moving average convergence/divergence) analysis for NZD/USD is generated for daily close at Fri Mar/23/2018 00:00:00. The indicator computation and presentation method complies with MetaTrader version of MACD [1], and additional MACD-Signal difference is presented to add the analysis with the price acceleration/decceleration representation (as seen in MACD histogram in other version [2]). The indicator presentation is shown in the Figure 1, showing the candlestick chart on the top, the MACD indicator plots in the middle, and the MACD-Signal difference bar in the bottom.

MACD Sign as Trend Direction Detection: An under-zero of MACD bar is performed by the indicator, and it gives an indication of a bearish-trend. The yesterday closing (Thu, Mar 22) shows -0.32% (-23.10 pips) drop in price from 0.72276 to 0.72045, this could be a confirmation that the trend will continue its journey. With the last historical MACD cross is detected 4 trading days ago on 03/16/2018 and confirmed by the signal cross triggered 9 trading days ago on 03/09/2018, disregarding the average price acceleration/decceleration, the down-trend is projected to keep its run.

MACD-Signal Difference as Price Acceleration Figure: The acceleration/decceleration analysis is meaningful if the MACD-Signal crossover is selected to trigger the trade signal. The acceleration of the price movement keeps its direction for the last 4 trading days since the former crossover on 03/16/2018, and the sell floating position should be held until the next crossing. The acceleration direction (represented by the sign of the value) and the current trend represented by the MACD level show that both acceleration and the trend get the same direction, so a strong bearish-trend is indicated.

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 00:00:07
Realtime: yes
Private publish time: 2018-03-23 00:00:15
Analysis Model Summary
First created: 2018-02-21 13:14:57
First data: 2015-01-02 00:00:00
Historical data since: 2018-02-21 13:14:57
Realtime data since: 2018-02-26 00:00:00
Latest data: 2018-03-23 00:00:00