USD/JPY, Thu Mar/22/2018, MACD Analysis: -0.45% Drop Confirm A Bearish-Trend
For USD/JPY market close at Thu Mar/22/2018 00:00:00, a moving average convergence/divergence (MACD) analysis for USD/JPY is generated. The analysis computation and presentation method uses MetaTrader version of MACD , and additional MACD-Signal difference is added to add the analysis with the price acceleration representation (as seen in MACD histogram in other version ). The indicator plot is depicted 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.
MACD Polarity as Trend Direction Detection: An under-zero of MACD value is performed by the indicator, and it gives an insight of a down-trend. The last market closing (Wed, Mar 21) shows -0.45% (-4830.00 pips) fall in price from 106.51900 to 106.03600, this could be a confirmation that the bearish-trend will continue its path. With the last recorded MACD cross is trigered 50 trading days ago on 01/10/2018 and confirmed by the signal cross detected 49 trading days ago on 01/11/2018, neglecting the price acceleration/decceleration, the down-trend is predicted to keep its path.
MACD-Signal Difference as Price Acceleration Figure: This acceleration/decceleration analysis is applicable in case the MACD-Signal crossover is selected to trigger the buy/sel signal. The acceleration of the price movement keeps its direction for the last 18 trading days since the previous crossover on 02/23/2018, and the long floating position should be held until the next flip. The trend represented by the MACD level is currently bearish while the acceleration show the reverse direction. A persistent view of this strategy would be interpreted that the bearish-movement will deccelerate so a quick trend reversal forecast is made.
- MACD Technical Analysis, Technical analysis with MetaTrader version of MACD
- MACD Wikipedia, Various implementation of moving average convergence/divergence analysis