USD/CAD, Fri Mar/23/2018, MACD Analysis: Acceleration Reversal is Triggered in Bullish-Trend
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 , and the MACD-Signal difference is shown to enrich the analysis with the price acceleration information (as shown by MACD histogram in other version ). 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.
- MACD Technical Analysis, Technical analysis with MetaTrader version of MACD
- MACD Wikipedia, Various implementation of moving average convergence/divergence analysis