OP, are you kidding with your subject title? When people talk about tape reading, they use DOM, T&S or very fast tick chart to read the flows of sitting orders and successful transactions. The bars on your 5-min charts are too slow to see the actions. For using 116 MA on your charts, you should be categorized as a swing trader. Let me give you a better title: Using MA's to read the market. No. I don't use MA. It sucks no matter how I slice it!
are you assuming that buying low to sell high works better than random entries and exits? The random would also buy high to sell higher at least quiet as often as buying low to sell high. If not more since the bias is positive.
It doesn't lag for the determination of volatility as volatility increases because of uncertainty. Price approaching a ma in the 100-200 range creates fear in traders that a potential transition in trend may occur shifting volatility higher.
Or you could just say this more simply... When a trend slows volatility increases. Price moving closer to a MA shows slowing in a trend.
That is a nonsensical statement. *Anything* that uses moving averages lags the actual market, by definition.
That is complete and utter nonsense. The lowest volatility periods have historically tended to be those with no discernable trend. Conversely, the highest periods of volatility have come during extremely violent trends.
Yeah this isn't necessarily tape reading at all. Plus that moving average is pretty long for intraday movements. Entry or exit solely on that parameter would be lagging and often even random. When using moving averages on intraday movements, I have always found the 5 and 9 EMAs to be the most useful. Closes above or below these dictate momentum or direction. Yes, these are still lagging, but decent for scalps or intraday moves.