USD/JPY, Fri Jan/02/2015, MACD Analysis: 0.00% Gain Confirm A Bullish-Trend

Figure-1 USD/JPY MACD (TF:D1, Fri Jan/02/2015 00:00:00)

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 [1], and an MACD-Signal difference is shown to enrich the analysis with the price acceleration data (as seen in MACD histogram in other version [2]).

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.

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: 2015-01-02 00:00:00
Optimization data:
Created time: 2018-02-21 13:37:11
Realtime: no
Private publish time: 2018-02-21 13:37:42
Analysis Model Summary
First created: 2018-02-21 13:37:11
First data: 2015-01-02 00:00:00
Historical data since: 2018-02-21 13:37:11
Realtime data since: 2018-02-23 00:00:00
Latest data: 2018-03-23 00:00:00