What is better: using a simple moving average or price action?

Discussion in 'Technical Analysis' started by padutrader, May 6, 2018.

  1. padutrader

    padutrader

    Price action is better for the gurus,teachers vendors, because it takes years to learn and they get paid during that time
    Moving average is better for the trader because it takes less than a day and there is no ambiguity or judgment required
     
    birdman and comagnum like this.
  2. Would you say one method has an edge over another method? If so, which one and why?
     
  3. ET180

    ET180

    The problem with averages and most technical indicators is that they lag. Essentially, averages are all filters. When you filter data, you're throwing out information. So therefore, a system based only on moving averages loses a lot of information compared to someone who is looking at the raw price data. A better reason though is that because it's so simple to use a moving average, just about anyone can do it. If you're doing what everyone else does, you have no edge. That said, there are some moving averages that have some significance. For example, the 200 day simple moving average on the SPX has provided support a few times this year.
     
  4. Handle123

    Handle123

    If you were to drive from Seattle, Wa to Sarasota, Fl, would you get directions ever few miles or have a map? In days of old on wind sailing ships, maps were called charts, they usually always steered by the stars, so there be star charts.
    http://www.pbs.org/wgbh/nova/ancient/secrets-of-ancient-navigators.html

    The trouble with just learning moving averages is you be taking trades when the charts are showing reversals, you be taking trades when chart is showing the medium highs are in, or where support/resistance is, there are at least 100 points at a minimum for me of when not to take otherwise good signals, and learning is an ongoing activity on charting. But once learned, you have it a lifetime.

    Actually, all the indicators I use lag, lagging reduces trading and longer your study indicators, you will learn where the highs/lows are most likely to turn. And using what everyone else is use, that depends on one's definition of "everyone", if it is retail-no edge, if commercial-I want to tailcoat, volume drives price.
     
  5. sss12

    sss12

    Gee, wow....it broke the 200 day MA....I bet I can short it before GS, Citadel, Steve Cohen....
     
  6. padutrader

    padutrader

    see my trades and technique which i have posted in many threads

    tell me where is the lag?
     
  7. sss12

    sss12

    Really ? LOL. It is the average of PAST periods.
     
  8. speedo

    speedo

    Whatever works for you is better. I use both but there are as many ways to trade as there are traders.
     
  9. padutrader

    padutrader

    you can do things simply or you may make it complicated.

    i feel moving averages may be learned faster,please see my posts in numerous threads where i have described how i use moving averages explained in detail in charts, bar by bar;apologies to Al Brooks:D
     
  10. padutrader

    padutrader

    yes but this the easiest for beginners
     
    #10     May 6, 2018