USD/CAD STA-MACD Analysis (Fri, Mar/23/2018): MACD-Signal Crossover is Triggered in Up-Trend

MACD Trading System Analysis for USD/CAD
A moving average convergence/divergence (MACD) technical analysis for USD/CAD is generated for candle close at Fri, Mar/23/2018 00:00:00. The detail about realization of this analysis model can be found in the reference [2]. The indicator 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). The indicator presentation is shown in the Figure 1, showing the market data chart on the top, the MACD indicator bar and line in the middle, and the MACD-Signal difference histogram in the bottom.


Figure-1 USD/CAD MACD Indicator

MACD Sign as Trend Direction Identification
A positive sign of MACD is shown by the indicator, and it shows an indication of an up-trend. The last closed bar (Thu, Mar 22), shows 0.32% (40.90 pips) step up in price from 1.28963 to 1.29372, this could be a sign that the trend will continue its path. With the last recorded MACD cross is trigered 28 trading days ago on 02/12/2018 and confirmed by the signal cross detected 23 trading days ago on 02/19/2018, disregarding the price acceleration/decceleration, the up-trend is predicted to continue its path.

MACD-Signal Difference: Price Aceleration Analysis
This momentum change analysis is applicable when the MACD-Signal crossover is selected as the trade signal. A cross between MACD bar and the signal is triggered in the current update, it appears as zero crossing in the MACD-Signal difference plot (lowest chart in Figure 1). This means that the price acceleration/deceleration is changing its direction, and it is the best time to sell the USD/CAD. The trend predicted by the MACD sign is currently up while the acceleration show the contradictory direction. A persistent view of this method would be interpreted that the bullish-move will deccelerate so an early trend reversal forecast is produced.

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 00:00:07
Realtime: yes
Private publish time: 2018-03-23 00:00:18
Analysis Model Summary
First created: 2018-02-15 10:12:29
First data: 2007-01-02 00:00:00
Historical data since: 2018-02-15 10:12:29
Realtime data since: 2018-02-19 00:00:00
Latest data: 2018-03-23 00:00:00