Ask Max Iwamoto: The essence of moving averages that even beginners can understand | Episode 1: What is a moving average?

Moving averages are an indispensable tool for investors in stocks, FX, and beyond, to the point that almost everyone in the field knows them. Yet some beginners may not know how to effectively utilize them. In this session, we asked technical analyst Max Iwamoto about how to analyze moving averages, so let’s learn together.

※This article is a reprint and revised edition of an article from FX攻略.com, May 2019 issue. Please note that the market information described in the main text may differ from the current market.

Profile of Max Iwamoto

Keisuke Iwamoto. As his nickname “Middle School Dropout Certified Technical Analyst” suggests, he is a rare no-formal-education figure in the analyst industry. Even in today’s strongly credential-focused society, he continues to work hard in the FX market, where such credentials don’t matter. With the belief that now, when more people can start FX casually, they should learn solid winning techniques, he conducts serialized articles and seminars as a lecturer.

Basics of Technical Analysis: Predicting Movement from Averages

Moving averages are perhaps the most popular indicator among many technical analysis tools. They were conceived in the United States in 1920, and popularized among many investors when J. E. Granville published “Granville’s Investment Law” in 1962. While moving averages themselves are well known, many people surprisingly don’t know what they indicate or in what situations they should be used, so we will explain them here.