Astonishing discovery from the eyes? Understanding the essence of FX appeal ~ Mastering moving averages (Part 3) ~ [Teacher Iida-chi]

Profile of Iidatchi-sensei

Former instructor at a prep school. Loves hot springs and holds a spa therapist qualification, a professional FX trader. Using the method called “Close Price Trading Method,” he has trained many excellent traders, and in his online study sessions, participants from all over the country, from the elderly to the young, learn together. The chart analysis method that emphasizes the “close price” has become popular among part-time traders as a trading approach that does not require constant focus on 24-hour markets.

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※This article is a reprint/edit of an article from FX攻略.com January 2021 issue. Please note that the market information written in the main text may differ from the current market.

Moving Averages are Deep and High in Potential

Hello, Iidatchi-sensei here. Continuing from the previous installment, I will provide a detailed and practical explanation of moving averages (MA). MA is very deep, but surprisingly few books explain how to utilize it in detail. Most explanations just stop at “sell/buy signals from the Golden Cross (GC) or Death Cross (DC).” As a result, many people fail to notice MA’s potential and quickly shift their attention to other indicators. That would be a pity.

First, MA allows you to determine the trend with a simple criterion: whether it is rising or falling. By combining this with long-term, mid-term, and short-term lines, the long-, mid-, and short-term trends become instantly clear, making it easier to judge buy or sell. Here are some practical ways to apply this to actual trading.