Price Forecast Report for Steem — 20th March 2018
Welcome to the Price Forecast Report for Steem — 20th March 2018.
This report investigates 4 popular technical analysis indicators:
Moving Average Convergence Divergence
Relative Strength Index
Aroon Indicator
On-Balance Volume
The above indicators are used in technical analysis as tools for forecasting the direction of prices through the study of past market data, primarily price and volume.
They are based on the idea that the market for buying and selling digital currencies is not efficient and historic prices can be used to predict future price movements, and using these tools can be advantageous to investors and traders.
Moving Average Convergence Divergence (MACD)
Moving average convergence divergence (MACD) is a trend-following indicator of momentum that illustrates the relationship between two moving averages of prices. The MACD is estimated by subtracting the 26-day exponential moving average from the 12-day moving average. A nine-day exponential moving average of the MACD, the "signal line", is then plotted on top of the MACD, functioning as an identifier for both buy and sell signals.
The graph below shows the MACD applied to the price of Steem using daily price data for the last 40 days.
As shown in the chart above, the MACD is currently above the signal line, implying a bullish signal, indicating that it may be an optimal time to buy.
According to the MACD, a bullish signal suggests that the price of the asset is likely to experience upward momentum.