USD/CAD, Fri Jan/02/2015, MACD Analysis: Bullish-Trend Confirmed, 0.00% Gain in The Last Close
A moving average convergence/divergence (MACD) analysis for USD/CAD is generated for candle close at Fri Jan/02/2015 00:00:00. The indicator chart is shown 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. The analysis computation and presentation method uses MetaTrader version of MACD , and the MACD-Signal difference is presented to add the analysis with the price acceleration data (as presented by MACD histogram in other version ).
MACD Sign as Trend Direction Detection: A positive value of MACD bar is shown by the indicator, and it gives a sign of an up-trend. The last closing candle (Thu, Jan 01), shows 0.00% (0.00 pips) increase in price from 1.16207 to 1.16207, this is an indication that the trend will continue its path. With the last historical MACD cross is detected 113 trading days ago on 07/28/2014 and confirmed by the signal cross detected 110 trading days ago on 07/31/2014, disregarding the price acceleration/decceleration, the bullish-trend is projected to continue its slope.
Price Acceleration Detection with MACD-Signal Diference: The MACD derivative analysis is meaningful when the MACD-Signal crossover is prefered to trigger the trading signal. The price movement acceleration has never change its direction for 5 trading days since its flip on 12/25/2014, and any sell floating trade should be hold until the next flip. The trend represented by the MACD sign is currently bullish but the acceleration show the reverse direction. A rational view of this strategy would mean that the up-move will deccelerate and a fast trend reversal forecast is decided.
- MACD Technical Analysis, Technical analysis with MetaTrader version of MACD
- MACD Wikipedia, Various implementation of moving average convergence/divergence analysis