USD/CAD, Fri Mar/23/2018, MACD Analysis: Acceleration Reversal is Triggered in Bullish-Trend

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

Reported in this page, an MACD (moving average convergence/divergence) analysis for USD/CAD 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 0.32% (40.90 pips) increase in price from 1.28963 to 1.29372, this shows a confirmation that the up-trend will continue its run. With the last MACD cross is produced 28 trading days ago on 02/12/2018 and confirmed by the signal cross triggered 23 trading days ago on 02/19/2018, neglecting the price acceleration/decceleration, the up-trend is projected to continue its slope.

MACD-Signal Difference as Price Acceleration Outline: The momentum change analysis is important in case the MACD-Signal crossover is chosen as the buy/sel signal. A crossover between MACD bar and the signal is triggered in the current update, it represented by zero crossing in the MACD-Signal difference plot (lowest part in Figure 1). It means that the price acceleration/deceleration has change its direction, and this is the time to sell the USD/CAD. The trend deducted by the MACD value is currently up but the acceleration show the reverse direction. A rational view of this strategy would mean that the bullish-move will deccelerate so a fast trend reversal forecast is produced.

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: no
Private publish time: 2018-03-23 05:24:12
Analysis Model Summary
First created: 2018-02-21 13:18:17
First data: 2015-01-02 00:00:00
Historical data since: 2018-02-21 13:18:17
Realtime data since: 2018-02-23 00:00:00
Latest data: 2018-03-23 00:00:00