The moving average period I use [Kousuke]}
To use moving averages effectively, setting parameters is important. However, there are several elements to consider, such as the type and the period of the moving average, which can make you hesitate. Therefore, this time we have Kousuke, a skilled trader, introduce various period settings for moving averages.
※This article is a reprint and rewrite of FX攻略.com March 2019 issue. Please note that the market information written in the main text may differ from the current market.
Kousuke's Profile
Kousuke. Japanese Certified Technical Analyst (Certified Member of the Nippon Technical Analysts Association, CMTA®) ・ Placed 3rd in the World Trade Contest WTC (Robbins Cup) ・ GogoJungle Indicator Sales Ranking No.1 ・ Monex Securities Tie-up ・ Swiss Bank Group Dukascopy Japan Tie-up ・ Appears on Radio Nikkei, etc. Currently, the 5-minute day trading logic “Proto FX” is公開. The clarity, precision, and high performance of the logic, along with member-only videos distributed, are popular, and the number of members proudly exceeds 1,700.
Official Site:https://oval-prime.co.jp/kousuke/
Twitter:https://twitter.com/kousuke_trader
Indicators for Viewing from Various Angles
Thank you for always reading our articles. I’m Kousuke. Today, I will write about “the period of moving averages I use.”
First of all, a moving average is the most popular technical analysis method that can view the movements of various financial instruments such as stock markets, foreign exchange markets, and gold as a single flow. In the realm of technical analysis, it is classified as a trend indicator.
The Simple Moving Average (SMA) has the simplest calculation method. For example, when set to a value of 20, you move back 20 bars from the latest closing price and add up the closes, then divide by 20. Many people fixate on the numerical settings of moving averages, but to be frank, moving averages are merely indicators of how you perceive the market's angle, and there is no number that guarantees you will win. If winning could be achieved solely by the values of moving averages, then golden cross and dead cross of moving averages would alone guarantee victory.
From the perspective of how moving averages are calculated, they are drawn based on already fixed prices, so they are lagging relative to the current rate, and unfortunately there is no attribute such as “touching a specific moving average will reverse.” If you want to verify this with your eyes, you can easily test it through an exhaustive search of parameters with MT4 optimization.
However, moving averages are also visual and very easy to understand when viewing the market’s angle. If you recognize the market as being wave-like, please consider trading with moving averages included.