Maybe to make these idiots, who think they can trade, clear that they will lose money as they have no knowledge/qualifications at all to survive daytrading. In daytrading only the happy few ever make consistently money. The new daytraders that entered the market the last few years only made the group of losers much bigger. People trading on 50 days EMA's are just cannonmeat. Decades ago the barrier was the natural selection.
While I agree with You to some extent in your reasoning, It is also true, that all of us at the beginning of our trading journey, we were just fresh meat ready to be slaughtered later. And I personally don't buy the notion of "knowledge". Or said in a more concise way, I don't believe my master degree in economics has provide any meaningful "knowledge" to my trading career. I could have started at my "twenties" without academics telling me what to study.. Indeed I am not aware of many academics ready to submit a verified track record.. Trading is a different animal that require getting soft hands, dirty.
Because anytime confirmation bias is at play it is easy to be fooled. SNAP was one of the stocks mentioned. Here it is with 50 SMA showing two times (small boxes) it bounced although 2nd time it actually stopped about 15-20 cents short - close enuf for gubmint work I suppose. But what happened in middle (large boxed area) up down and all around except stopping at MA. Oh but I needed to use an Exp MA and when that has its misses, I need to use a different length, no no I need to use a MA ribbon, weighted, Hull, Ehlers, Triangular, Nano, blah blah blah. Price based real supply/demand support and resistance changes direction. Nothing else.
All correct of course. I hate to see intelligent people with hard-earned money being taken down blind alleys by brokers, trainers and pundits and soundly mugged at the bottom end. However - how does this affect me? Does it make my trading less profitable or more profitable? Harder or easier? More time-consuming or less time-consuming? The answer in each case is neither.
But what’s the difference in trading off your lines vs his lines? The line either holds or it doesn’t.
"My" lines are drawn off of actual support and resistance points. Prior points where price changed direction and/or accelerated. Not some calculated point ..... in space but where buying and selling actually took place. More demand or supply. No math involved, other than counting 1,2,3,4,5, shares or contracts. Nothing arbitrary, no ambiguity. Zip.
OK, but I asked you what the difference in trading them? I assume you have a stop in case the "actual" support breaks? And I have a stop if the "imaginary" support breaks. I haven't seen any studies to show that any line is better than the other. Traders will either step in at support or not. It will either hold the line or not hold the line. I'm not saying what you are saying is wrong, just that it's as subjective as any TA stuff. There are mechanical systems that use DMAs, like 50/100/200 DMA pinball, or selling puts just below 200DMA, or longing on 50/100/200DMA cross up and shorting on 50/100/200DMA cross down. That makes DMAs a "worth watching" line in the sand, that's all.