Standalone MACD Technical Analysis

Technical analysis models with MACD as standalone trading system have been developed for several currency pairs. The analysis is based on MetaTrader version of MACD described in the reference [1]. To complete the analysis of MACD-Signal crossover, a bar plot of MACD-Signal difference is added in the indicator chart to ease the discussion with the represented acceleration profile. An MACD indicator chart is generated by each analysis models, as shown in the Figure 1 for example.

Figure 1. Standalone MACD Technical Analysis Model

The top chart is the daily candle of the analyzed currency price, the middle is the MetaTrader version MACD, and the bottom is the MACD-Signal difference representing the price acceleration.

MACD Parameters

The default parameter of 12 periods (of daily close price) for fast EMA(exponential moving average) and 26 periods for slow EMA is selected as the standard used by many traders in many platform. The averaging length for getting filtered MACD signal is 9 periods, and please keep in mind that the averaging method of this MetaTrader version MACD is simple moving average (SMA).

Result and Publication

The model is implemented for EUR/USD, GBP/USD, USDCAD, USD/CHF, USD/JPY, AUD/USD, adn NZD/USD. The analysis for both historical and real-time can be accessed here:

 

Reference:

  1. Moving Average Convergence/Divergence Analysis

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