USD/CHF STA-MACD Analysis (Fri, Mar/23/2018): -0.01% Decrease While Trending Up
MACD Trading System Analysis for USD/CHF
A moving average convergence/divergence (MACD) analysis for USD/CHF 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 ), 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 . 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.
MACD Sign as Trend Direction Identification
A positive sign of MACD is shown by the indicator, and it shows a prediction of an up-trend. The last market closing (Thu, Mar 22) shows -0.01% (-1.10 pips) drop in price from 0.94912 to 0.94901, but always notice that this behavior is possible since MACD indicator is based on averaging method. With the last historical MACD cross is detected 9 trading days ago on 03/09/2018 and followed by the signal cross detected 4 trading days ago on 03/16/2018, disregarding the price acceleration/decceleration, the bullish-trend is projected to continue its run.
MACD-Signal Difference: Price Aceleration Analysis
The MACD histogram analysis is meaningful if the MACD-Signal crossover is used to trigger the buy/sel signal. The acceleration of the price movement has never change its direction for the last 31 trading days since the former crossover on 02/07/2018, and the long floating position should be kept until the next crossing. The acceleration direction (represented by the sign of the value) and the current trend represented by the MACD value show that both acceleration and the trend get the same direction, so a strong bullish-trend is indicated.
- MACD Technical Analysis, Moving average convergence/divergence stand-alone trading system
- MACD Analysis Model, Model description of MACD analysis