USD/CAD, Thu Mar/22/2018, MACD Analysis: -1.33% Fall While Trending Up

Figure-1 USD/CAD MACD (TF:D1, Thu Mar/22/2018 00:00:00)

A moving average convergence/divergence (MACD) technical analysis for USD/CAD is generated for candle close at Thu Mar/22/2018 00:00:00. The indicator plot is shown 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. The analysis 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 information (as presented by MACD histogram in other version [2]).

Detecting Trend Direction by MACD Sign: An above-zero of MACD bar is performed by the indicator, and it could be an insight of a bullish-trend. The updated closed bar (Wed, Mar 21) shows -1.33% (-173.50 pips) fall in price from 1.30698 to 1.28963, but always be aware that this condition is fine since MACD indicator is working in moving averaging mode. With the last historical MACD cross is detected 27 trading days ago on 02/12/2018 and confirmed by the signal cross produced 22 trading days ago on 02/19/2018, neglecting the average price acceleration/decceleration, the up-trend is projected to continue its journey.

Price Acceleration Detection with MACD-Signal Diference: This MACD derivative analysis is applied in case the MACD-Signal crossover is used as the trade signal. The acceleration of the price movement keeps its direction for the last 6 trading days since the previous flip on 03/13/2018, and any long floating trade should be held until the next crossover. The acceleration direction (represented by the sign of the level) and the current trend detected by the MACD level show that both acceleration and the trend is in the same direction, so a strong up-trend is in the run.

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: 2018-03-22 00:00:00
Optimization data:
Created time: 2018-03-22 00:00:06
Realtime: yes
Private publish time: 2018-03-22 00:00:15
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