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

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

  1. dozu888

    dozu888

    The market is only about 10% 'un-random'... you need the most direct information to read that 10%.... a 1-degree derivative like the MA is gonna just kill any edge you have.
     
    #21     May 6, 2018
  2. padutrader

    padutrader

    i have shown results of a win rate of 100% trading with moving averages please see my posts in the thread https://www.elitetrader.com/et/thre...d-on-moving-averages-thoughts-on-this.320733/
    i have also described in detail with full explanation, using charts, my technique.
    Using moving averages to enter can give you very high win ratios , provided you use them properly
    The only drawback is that you need to wait for your trade to set up properly
     
    #22     May 7, 2018
  3. Handle123

    Handle123

    I did not post that moving averages show reversals, I said charting shows reversals.

    "The trouble with just learning moving averages is you be taking trades when the charts are showing reversals, ... "
     
    #23     May 7, 2018
  4. JSOP

    JSOP

    I find PA and MA all have their own uses. PA is more useful as a tool to deduce short term direction of where the price is going. MA is used more as a confirmation tool where the price has gone. Both are ambiguous in their own way and both would take a long time to completely master. And both need other technical analysis tools or even news/fundamental factors to confirm as neither is 100% reliable on their own.
     
    #24     May 7, 2018
  5. padutrader

    padutrader

    thanks for the clarification
    i am not sure i suggested learning only moving averages .....
    if "all" moving averages are going in a particular direction,which is unambiguous and easy to judge,you cannot go much wrong if you trade that direction
    the problem is that such unambiguous moving average configuration does not occur all the time and you have to wait for long periods for that ideal situation that traders shift to much less sure methods.
     
    #25     May 7, 2018
  6. padutrader

    padutrader

    i must clarify that i use moving averages in a certain and specific way as described by me in detail in my other posts in various threads
     
    #26     May 7, 2018
  7. padutrader

    padutrader

    see the live chart of uerusd below? do you think that moving averages are showing where the price has gone? or where it is going?
    here both moving averages and price action are SHOUTING the same thing

    e20.png
     
    #27     May 7, 2018
  8. padutrader

    padutrader

    i think it is very important to trust your strategy or analysis something that does not come easy

    my point is that for me i have found it is very much easier to trust a moving average signal than a price action one.
     
    #28     May 7, 2018
  9. I have read your previous threads, man they are hilarious, sorry
     
    #29     May 7, 2018
  10. padutrader

    padutrader

    i am not sorry
    i am laughing all the way to the bank
     
    #30     May 7, 2018