[Series Article] This is the most profitable moving average line!
Hello, everyone. This is Kuromo. (Aka Ika?)
Today I’d like to introduce the moving average line that has earned me the most money over my long years of experience.
Lately I’ve been writing about many things and realized I’ve taken many detours. Well, I guess that’s in the past now.
Today I had EA handle the formatting and design—how does it look?
Compared to when I did almost everything by myself, I find it much easier to read personally.
Now, please enjoy—
■ What is a Moving Average in the first place?
A moving average isa technical indicator that displays the average price over a certain period as a line on the chart.
Because it visually captures the market’s “trend” and “momentum,”it is used by many traders as a gauge of trends and reference points for reversals.
■ Difference between SMA and EMA
There are two representative moving average types:
?SMA (Simple Moving Average)
A line that simply averages the closing prices over a set period. It moves smoothly and is resistant to noise, but reacts slowly.
?EMA (Exponential Moving Average)
Gives more weight to the most recent prices, soit is sensitive to price movement and reacts quickly.
→ If you want to focus on the current flow or target reversals, this is recommended.
So Kuromo. is definitely in the EMA camp!
| Type | Features | People suited for |
| --- | ----------- | ---------------- |
| SMA | Smooth; slow to react | People who want to see the trend clearly |
| EMA | Price-sensitive; fast to react | People who want timely entries |As you can see, even with the same moving average,the timing feel changes greatly depending on which you choose.
■ I was also lost at first
Honestly, at first I thought, “There won’t be much difference for any period.”
But after more than eight years of trading, I reduced my funds many times, tested, and started over…
I kept thinking the line that happened to stop was the correct one, only to be deceived—through such experiences, one fact finally became clear.
“Effective moving averages have numbers that everyone is watching.”
In other words,the numbers that are watched closely become lines where reversals or breakouts are more likely to occur.
And such lines aren’t at places you want to see them; they exist where the market itself is watching..
? So, what is the answer?
Through many years of experience and testing, I arrived at the following conclusion:
✅ Can be used in the short term as well
✅ Also works with fractal structures
✅ Can balance reversal targeting and trend judgment
──Two EMA periods with such versatility and expected value.
In the next section, I will explain the following four points in detail:
✔️ The two concrete numbers
✔️ Why they work
✔️ How to apply them fractally
✔️ Actual chart examples that worked
✅ Conclusion: If you’re unsure, add “100 EMA” and “200 EMA.”
These two lines aren’t just nice round numbers.
Many market participants pay attention to them, making them lines that react more easily.
■ Why do 100 and 200 work?
?Reason 1: They are watched by an overwhelming number of people
→ They are adopted by many traders and algorithms and become a price area that attracts attention.
?Reason 2: They are used as turning points for trends
100 EMA → a milestone for mid-term trends
200 EMA → the watershed of long-term trends
?Reason 3: Good balance with trading opportunities
→ With 300 EMA or higher, you can react, but opportunities are fewer.
100 and 200 are effective and easy to use—an exquisite setting.
? Fractal application: Reproducing higher-timeframe EMA on a lower timeframe
The true value of moving averages isthe ability to translate lines that are watched on higher timeframes to lower timeframes.
This allows entries and exits to be made without going against the broader flow.
? Quick EMA Fractal Guide
| Higher timeframe | Reproduced on lower timeframe | Description |
| ---------- | ------------------ | -------------------------------- |
| 15-minute 25 EMA | Show 100 EMA on 1-minute | 15 min = 1 min × 15 → 25 ÷ 15 ≒ 1-minute EMA |
| 4-hour 20 EMA | Show 200 EMA on 5-minute | 4 hours = 5 minutes × 48 → 20 × 48 ≒ 5-minute EMA 200 |
| daily 20 EMA | Show 100 EMA on 1-hour | Daily = 1 hour × 24 → 20 × 5 ≒ 100 EMA |? Key Points to Watch
By placing “100 EMA” and “200 EMA” on a lower timeframe,
you can automatically capture the commonly watched EMA lines on higher timeframes.
✅ You can catch reversals without difficult analysis
✅ Enter without fighting the higher-timeframe trend
✅ Can also be used as a criterion for exits
■ Three practical examples
✅Example 1: 100 EMA on 1-minute → Rebound and move in line
→ Equivalent to 25 EMA on 15-minute. Ideal for scalping.
✅Example 2: 200 EMA on 5-minute → Acts as a resistance band
→ Equivalent to 20 EMA on 4-hour. Reacts well to pullbacks and pullbacks to buy on dips.
✅Example 3: 100 EMA on 1-hour → Higher timeframe’s key line
→ Visualizes the daily level on the hourly chart. Basis for buying on pullbacks.
✅ Summary
EMAs come down to how you choose the numbers
100 EMA and 200 EMA are,“lines watched by traders worldwide”
When used fractally,you can apply a consistent strategy on any time frame
Trading isn’t about a single person’s perspective;
by riding the perspective many are watching, you increase your chances of success
First, draw these two lines on your chart and test them.
You’ll likely see the stopping reasons, the growth basis, and previously unseen perspectives
【A fractal-based auto-entry logic that reverses on both big and small waves】↓↓↓
https://www.gogojungle.co.jp/tools/indicators/64612
