USD/JPY, Fri Jan/02/2015, MACD Analysis: 0.00% Gain Confirm A Bullish-Trend
An MACD (moving average convergence/divergence) technical analysis for USD/JPY is generated for daily close at Fri Jan/02/2015 00:00:00. The indicator plot is presented in the Figure 1, showing the price chart on the top, the MACD indicator plots in the middle, and the MACD-Signal difference plot in the bottom. The indicator computation and presentation method follow the MetaTrader version of MACD , and an MACD-Signal difference is shown to enrich the analysis with the price acceleration data (as seen in MACD histogram in other version ).
MACD Sign as Trend Direction Detection: An above-zero of MACD value is performed by the indicator, and it shows an indication of a bullish-trend. The recent closed bar (Thu, Jan 01), shows 0.00% (0.00 pips) increase in price from 119.84500 to 119.84500, this shows a confirmation that the trend will continue its run. With the last recorded MACD cross is detected 50 trading days ago on 10/23/2014 and followed by the signal cross detected 108 trading days ago on 08/04/2014, neglecting the average price acceleration/decceleration, the bullish-trend is projected to continue its journey.
Figuring Out Price Acceleration by MACD-Signal Difference: The MACD histogram analysis is meaningful when the MACD-Signal crossover is chosen to trigger the trade signal. The price movement acceleration keeps its direction for 2 trading days since its flip on 12/30/2014, and the short floating position should be hold until the next crossing. The trend represented by the MACD sign is currently up while the acceleration show the opposite direction. A rational view of this method would be interpreted that the up-movement will deccelerate and an early trend reversal prediction is resulted.
- MACD Technical Analysis, Technical analysis with MetaTrader version of MACD
- MACD Wikipedia, Various implementation of moving average convergence/divergence analysis