Environment awareness takes precedence over technique; it also proves powerful in GBP/JPY! The Strongest MA where currency strength is plotted on the moving average
The phrase 'environment awareness is more important than the method' as stated by the developer FX-skull.com on the indicator's product page, I think will be readily embraced by many investors who trade FX.
The The moving average (MA) created by FX-skull.com, on which currency strength is drawn on the moving average, I will actually load into MT4 the content FX-skull.com explains in the video, and today I would like to cover it.
The indicator is named “Strongest Moving Average.” For USD/JPY there is
There is also a full set containing all 13 currency pairs: ◆Treasure-hunt FX Strongest Moving Average Full Set.
Now, today I tried using it for GBP/JPY.
Before using it, please refer to the indicator's how-to table.
As shown in the image above,
a yellow circle indicating that JPY is being sold (JPY is weak).
From the yellow circle indicating that JPY is being sold (JPY is weak) to the circle indicating that GBP is being sold and JPY is being bought (GBP is weak, JPY strong).
indicate that GBP is being sold and JPY is being bought (GBP is weak, JPY is strong).
From there, six levels are displayed on the moving average (MA) to express currency strength/weakness to FX traders.
I actually displayed three ‘Strongest Moving Averages’ on the GBP/JPY 15-minute chart.
The 20-SMA on the 15-minute chart
The 1-hour 20-SMA (80-SMA): since 80 candles on the 15-minute chart amount to 1,200 minutes = 20 hours, it is the 1-hour 20-SMA.
The 4-hour 20-SMA (320-SMA): Since 320 candles on the 15-minute chart amount to 4,800 minutes = 80 hours, it is the 4-hour 20-SMA.
Three Strongest Moving Averages are used in a multi-timeframe analysis to find entry points and exits.
When actually looking for entry points using the indicator,
As the 20-SMA rises well in advance, a sign appears: “JPY is being sold and GBP is being bought (JPY weak, GBP strong).”
The 80-SMA also begins to tilt upward, yielding the sign “JPY is being sold and GBP is being bought (JPY weak, GBP strong).”
The 320-SMA turns upward, the sign “GBP is being bought (GBP strong)” appears, and entering at the orange arrow area would be a very solid entry point.
For profit-taking,“JPY is being sold GBP is being bought (JPY is weak GBP is strong)” signal turns off, or you could hold until the 320-SMA signal of “GBP is being bought (GBP strong)” disappears for the best result.
Many people perform multi-timeframe analysis, but how about displaying the Strongest Moving Average on various currency pairs and not trading until an optimal point, making fewer but higher-precision trades?
I think this is an indicator that can bring environmental awareness into trading.
Lastly, I would like you to watch the trading method video using the Strongest Moving Average created by the developer.