NZD/USD STA-MACD Analysis (Fri, Mar/23/2018): -0.32% Drop Confirm A Down-Trend

MACD Trading System Analysis for NZD/USD
A moving average convergence/divergence (MACD) analysis for NZD/USD is generated for daily close at Fri, Mar/23/2018 00:00:00. The analysis computation and presentation method uses MetaTrader version of MACD (see reference [1]), and an MACD-Signal difference is presented to enrich the analysis with the price acceleration/decceleration representation (as presented by MACD histogram in other version). Further detail about development of this analysis model is described in the reference [2]. The indicator plot is presented in the Figure 1, showing the market data plot on the top, the MACD indicator plots in the middle, and the MACD-Signal difference bar in the bottom.


Figure-1 NZD/USD MACD Indicator

MACD Sign as Trend Direction Identification
A less than zero of MACD is shown by the indicator, and it gives a sign of a down-trend. The last closing (Thu, Mar 22) shows -0.32% (-23.10 pips) fall in price from 0.72276 to 0.72045, this could be an indication that the bearish-trend will continue its journey. With the last MACD cross is produced 4 trading days ago on 03/16/2018 and confirmed by the signal cross triggered 9 trading days ago on 03/09/2018, neglecting the price acceleration/decceleration, the bearish-trend is expected to continue its journey.

MACD-Signal Difference: Price Aceleration Analysis
This momentum change analysis is applied in case the MACD-Signal crossover is used as the trading signal. The acceleration of the price movement keeps its direction for the last 4 trading days since the former crossover on 03/16/2018, and any sell floating trade should be held until the next crossing. The acceleration direction (represented by the sign of the value) and the current trend indicated by the MACD level show that both acceleration and the trend get the same direction, so a strong down-trend is expected to continue.

REFERENCES

  1. MACD Technical Analysis, Moving average convergence/divergence stand-alone trading system
  2. MACD Analysis Model, Model description of MACD analysis

Presented Analysis
Data time: 2018-03-23 00:00:00
Optimization data:
Created time: 2018-03-23 00:00:04
Realtime: yes
Private publish time: 2018-03-23 00:00:16
Analysis Model Summary
First created: 2018-02-15 10:08:12
First data: 2007-01-02 00:00:00
Historical data since: 2018-02-15 10:08:12
Realtime data since: 2018-02-20 00:00:00
Latest data: 2018-03-23 00:00:00