Classic profit strategy in moving average trading: Glenbi trading rules

Technical analysis occupies an important position in trading, and the Glenbi trading rules are one of the classics. The Granbi trading rules, also known as the Granbi Eight Rules, are a set of trading concepts proposed by American investment expert Joseph E. Granville (Granville). This set of rules is mainly based on changes in the moving average (MA) to judge the timing of buying and selling investment products. Today, EagleTrader will share in detail some practical knowledge about the rules of Glenbi trading, hoping to help you better seize opportunities in the forex market.

The core of the Glenbi trading rules

Gulanbi trading rules include four buy signals and four sell signals, which are:

Buy signal:

• When the moving average gradually changes from a downward trend to a level or rise, and the price breaks through the moving average from below the moving average, it is considered a buy signal

• After the price fell below the moving average, it immediately rebounded above the moving average, and the moving average continued to rise, which is considered a buying signal

• Although the price fell, it did not fall below the moving average and immediately reversed and rose, which was regarded as a buying signal

• The price plummeted, fell below the moving average, and stayed away from the moving average, and may rebound and rise, which is regarded as a buying opportunity

Selling signal:

• When the moving average gradually changes from an upward trend to a level or decline, and the price falls below the moving average from above the moving average, it is considered a selling signal

• After the price breaks through the moving average, it immediately falls back below the moving average, and the moving average still falls, which is considered a selling signal

• The price continues to be below the moving average, and even if it rebounds, it cannot break through the moving average. It is considered a selling signal

• The price rose sharply, and then moved away from the moving average and then fell, and turned to the moving average, which was considered a selling signal

How to apply the Glenbi trading rules

For example: We observe the EUR/USD (EUR/USD) currency pair in the forex market and select the 10-day moving average (MA10) as a reference.

Simplified example of buying signal:

EUR/USD showed a downward trend for a period of time, and MA10 also fell simultaneously. Subsequently, the price of EUR/USD broke through below MA10 and MA10 began to turn upward or remained stable, which was in line with the buy signal in the Glenbi trading rules. At this point, traders may consider buying EUR/USD.

Sell signal simplified example:

EUR/USD During the rise, the price is from MA1The 0 falls below and the MA10 begins to turn downward or remains stable, which is in line with the sell signal in the Glenbi trading rules. Even though the price briefly rebounded to around MA10, it failed to successfully break through and MA10 maintained a downward trend, which further confirmed the effectiveness of the sell signal. At this point, traders may consider selling EUR/USD.

Through this simplified example, we can see the basic application of the Glenbi trading law in actual forex trading, that is, finding buying and selling points by observing the relationship between the price and the moving average.

However, although the Glenbi trading rules provide clear buying and selling signals, it is not omnipotent. Changes in market conditions and the characteristics of different currency pairs may affect the accuracy of the law. Therefore, when using the Gulhami trading rules, traders should combine other technical analysis tools and market sentiment, as well as their own trading strategies and risk management.