True, when used the wrong way moving averages can cripple any trading account fast. Death by a thousand cuts, as they say...
This is what I was thinking when I joined in 2017. But then I soon discovered that for a significant segment of the membership, it's about claiming that their approach is the only correct way to trade, and that if they cannot succeed using some other system, then no one else can either. (By the way, in my previous post, when I wrote that there was the potential to recoup my loss by promptly selling EURAUD, I should have typed "buying" instead.)
Using just the first example of a short entry on an instrument you trade, ENTRY AT OPEN OF BAR IF: CL.1>OP.2*1.10, If OP.2 = 314.00, and a legal entry was taken, what nearest price would CL.1 = ? What instrument type do you trade?
That's why MA's are useless as trading signals. MA's don't give information that is specific/accurate enough to enter or exit the market. Reaction time of MA's are too slow to trade on, and if you make them faster (shorter periods or smaller timeframe) to get faster signals, your MA's will start to whipsaw you.
I use Exponential MA's and I've found that using the (H+L)/2 instead of the close works very well. At least with tick charts
There are no technical indicators or price action patterns that give you indications with anything better than approximately 50% precision. You would be damn lucky to find something that gave a correct indication 55% of the time.