Moving averages

Do you trade with moving averages. lately ive been going with out just pure PA and TA just want to see what other traders are doing.

 

I've never seen any evidence that they have much predictive power, and I've looked.

 

Why do you need to predict?

 

1) Do you attend Ohio State or Penn State?
2) Moving averages work "well" in a trending market, not so in a sideways market. They are a lagging indicator at best.

 

Maybe so he can decide whether to go long or short?

(edited)

 

Sure they do ... just the opposite way.

 

I determine the trend using moving averages (strictly EMA) because I find it easier to quantify it numerically, However my actual entry to pull the trigger is always based on price action.

 

Of course nothing is perfect. But MA's can be very effective for long periods of time.

 

Until you get to a choppy period.

It's easy to show a MA and a trendy section of chart and say they are profitable. Indicator vendors do it all the time to try and make their shitty systems look profitable.

Just saying.

 

I like looking for a retracement to the 21ema for counter-trend trades. Thats the only squiggly line I have anywhere on my intraday charts.

I certainly dont use it to predict nor do I use it for any concrete entry/exit/stop. That line is just an area of interest to me, nothing more.