Analysing Steem Price Using MACD – June 2017

In my last post on this topic, I introduced you to MACD (Moving Average Convergence Divergence) – what it was, how it can be used and its effectiveness using Steem price experience over the period February to April 2017. If you would like to read my last article, click here.

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MACD applied to Steem Price in June 2017

In this post, I look at June 2017 and make some observation on what the MACD is telling us.

Below is the MACD graph for June and like the data from Feb to April, this indicator has proved to be effective in identifying points when the price of Steem is about to change.

In June, there were 3 signals based on the MACD, 2 sell signals and 1 buy signal. The buy signal was followed by a sharp increase in the price of Steem. The effectiveness of the latest sell indicator was also significant. The first sell indicator was quite indifferent – the price movement following this point and before the buy signal was small. Overall, the MACD would have been very effective if applied to the price of Steem over June.

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What does this Mean?

I will continue to monitor the effectiveness of this tool and publish regular updates on the MACD. The data I’ve analysed so far would indicate this tool to be effective in identifying when the price of Steem is about to change. Whether you might use this to trade or just as a source of information on the price of Steem, the MACD appears quite predictive in this space.

Thank you for reading