Writer:Momoko Mama
Appearances suggest an ordinary housewife who enjoys child-rearing... However, my mind is overflowing with “cells called investment,” and no one around me would notice.
Blog:Thoroughly revealing the secrets to increasing a housewife trader’s assets.

Hello.

Recently I had the opportunity to speak on the phone with an editor for the first time, and apparentlythey thought I might actually be a man pretending to be a housewife writing columns, and they were surprised when they found out I’m a real woman. Is my writing perhaps so masculine?

So today I’ll try writing a bit more femininely. I’ll do my best♡(Oh dear, I’ve ended up sounding a bit like a gay man.)

Preparation 1: Confirm the market direction with charts

Among traders, there are people who win in various ways.

Broadly speaking,「People who require fundamentals」and「People who do not require them」— let’s divide them.

By the way, I am in the “do require them” camp. It isn’t about which is right or wrong; it’s about individual traits.

Howeverthese two points being different can lead to big differences in the points looked at and how one aims to capture moves in trading..

People who do not require fundamentals are those who can complete everything with data on the chart alone. They tend to be short-term traders with absolute confidence in technicals.I think.

People like me, who trade while incorporating fundamental data,analyze from a mid-term perspective and trade, in other words,use mid-to-long-term timeframes from hourly onwards.

And the indicators used are

• 「Exponential Moving Average (EMA)」
• 「Ichimoku Kinko Hyo」
• 「MACD」

For exits, I also look at theBollinger Bands. “Support and resistance lines from past results”should of course be considered.

Drawn were the lines indicating where recent buying and selling tends to occur.

Display these, and for this time I will show the USD/JPY chart in the order: weekly → daily → 4-hour → 1-hour.

There are various points to focus on regarding indicators, but I plan to explain the points to watch in detail in future columns.

For now, I’ll first pick out straightforward points to check the market direction!

The points you must look at!

I determined that the long-term EMA (yellow circle) broke downward and the upward pressure turned into a downtrend.

The target is around 105 yen in October 2014, and you can clearly see a support line around the May low of about 101 yen.

Next, the daily chart

The EMA lines are three and are far apart and trending downward, indicating strong downward pressure.This chart is a reduced version, so it’s hard to see, but the lowest, short-term EMA remains downward, and the rebound to the mid-term EMA is slow, suggesting the decline will continue. The return toward the cloud is also slow.

The leading span acts as resistance and pushes price down again.

Next, the 4-hour chart

Compared with the daily and weekly charts, it moves sideways, butthe long bearish candles are noticeable, indicating that the rallies are met with selling.

Finally, the 1-hour chart

Here too, all three EMAs are spaced far apart, indicating a strong downtrend.

However, the lagging span (orange line) has begun to turn slightly downward, and there is a possibility it could move above the candle bodies, breaking above.

If that happensthe downward pressure may ease temporarily = a temporary bottom may be confirmed = a potential retracement toward the leading span = and then further selling could occur.

In simple terms, listing these points shows the market direction as described.

In reality, I would analyze each chart in more detail to determine how to trade, but I’ll explain more about this again in future columns.