USD/CHF, Thu Mar/22/2018, MACD Analysis: -0.76% Decrease While Trending Up
For USD/CHF market close at Thu Mar/22/2018 00:00:00, an MACD (moving average convergence/divergence) technical analysis for USD/CHF is generated. 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. The parameter computation and presentation method follow the MetaTrader version of MACD , and an MACD-Signal difference is added to enrich the analysis with the price acceleration information (as seen in MACD histogram in other version ).
MACD Sign as Trend Direction Detection: A more than zero of MACD is shown by the indicator, and it shows an insight of an up-trend. The yesterday closing candle (Wed, Mar 21) shows -0.76% (-72.70 pips) drop in price from 0.95639 to 0.94912, but we should be aware that this condition is fine since MACD indicator is based on averaging method. With the last historical MACD cross is detected 8 trading days ago on 03/09/2018 and confirmed by the signal cross detected 3 trading days ago on 03/16/2018, disregarding the average price acceleration/decceleration, the up-trend is predicted to keep its slope.
MACD-Signal Difference as Price Acceleration Outline: The momentum change analysis is meaningful if the MACD-Signal crossover is chosen to trigger the buy/sel signal. The price movement acceleration keeps its direction for 30 trading days since its cross on 02/07/2018, and the long floating position should be hold until the next cross. The acceleration direction (detected by the sign of the value) and the current trend represented by the MACD level show that both acceleration and the trend move in the same direction, so a strong bullish-trend is indicated.
- MACD Technical Analysis, Technical analysis with MetaTrader version of MACD
- MACD Wikipedia, Various implementation of moving average convergence/divergence analysis