"East asia Economy ONLINE column is published!" You are not taking advantage of the chance to win
Good morning, this is Matsushita.
Today, from the opening,
I have a question for you.
“Do you know moving averages?”
For readers of this article,
most would answer
“Yes, I know.”
Then, the next question.
“Are you using moving averages correctly?”
When something is stated like this, with the word “correctly,”
you might think, “Hmm, I wonder.”
Unfortunately, many traders
do not use moving averages correctly.
If you can truly use moving averages correctly,
you will not incur huge losses so often.
Your current losses will be halved.
Today, let’s do a one-point lesson on the correct way to use moving averages.
From here on, rather than reading on a smartphone,
go back home and check on a computer or tablet
on a large monitor screen.
First, display the chart you usually check on your monitor.
In most cases, you will see two or three
moving averages displayed.
The most typical combination is
three moving averages of 5 days, 25 days, and 75 days,
perhaps.
Today, we will proceed with the longest period among these,
the 75-day line.
Among the three moving averages,
it serves as the long-term moving average.
Literally, it indicates a long-term trend.
Use this long-term moving average correctly.
The chart you are looking at now is either
1) where the candlesticks are above the 75-day line
2) where the candlesticks are below the 75-day line
in relation to it.
Please check.
Here, if you are someone who wants to buy in a strong, steadily rising stock or market,
and you are in state 1, it is OK to buy, but
in state 2, it is NG.
Do not buy.
Because when candlesticks are below the long-term moving average,
that indicates a downtrend,
and the probability of rising in a downtrend is low.
In a strong, steadily rising environment,
those who want to buy should
buy only when candlesticks are above the long-term moving average.
Are you always following that?
You are not.
That’s why losses keep happening.
The strategy for those who buy in a strong, steadily rising environment is trend-following.
And, unless there is clear, obvious fundamental justification
you should win more easily by initially following the trend.
In other words, those buying above the 75-day line tend to win more.
However, on your monitor, your holdings or currencies you are long on
may be below the long-term moving average.
That is a downtrend.
There is still potential to fall further.
Even if you think you know moving averages,
you are not using them correctly, are you.
After all, you are being shown valuable information for free,
and you tell us about it every day.
The information you need to win
is often right in front of you.
Approach trading with care and accuracy.
There are chances to win right in front of you.
Investing becomes possible to win when you attack correctly.
If you do not know the correct way to attack,
Majoto Investment School Online FX Investment Ability Training Course
learn about it there.