As I mentioned in the Flash Crash article, we do not recommend carrying over positions (swing trades).
So, I recommend day trading or scalping on this blog.
In day trading and scalping, it is important to recognize which trend is more likely to occur today.
Displays a daily candlestick chart and displays the following indicators:
- 5 SMA (5-day simple moving average line)
We don't need a long-term moving average line because we consider whether the candlestick on the 1st day is a positive line or a negative line. The reason for the 5th is that FX is a week in 5 business days.
Analysis of the 5 SMA reveals the following properties:
- Condition ①: The slope of 5 SMA is upward and the opening price is above 5 SMA
There is a high probability that a white candlestick will appear
- Condition ②: The slope of 5 SMA is downward and the opening price is below 5 SMA
There is a high probability that a black candlestick will appear
If you dig a little deeper into ①②, you can see that there are properties.
- Condition ③: When the opening price deviates from 5 SMA
It tries to approach 5 SMA once.
Therefore, if the trading policy for the day is as follows, the winning rate will increase.
- In the case of condition ①: buy policy
- In the case of condition ②: selling policy
- In the case of conditions ① and ③: buy policy after waiting for 5 SMA to approach
- In the case of conditions ② and ③: Selling policy after waiting for 5 SMA to approach
- Otherwise (if the slope of the 5 SMA is poor): refrain from trading.
Please try once.