in the markets there is no one side;there is always the need that the other side of the transaction be taken.it does not mean the other side is 'wrong'[ there is a fool in every transaction,as the saying goes, i do not agree with this saying] it just means that the other side has a different time frame than you have so i appreciate you putting your foot forward.
i do not use crossovers Traders have dismissed the use of moving averages but it does help in interpretation of certain market conditions just like price action does. I use both and perhaps if you are interested in how i use both, you could visit my journal where i explain in depth with charts the reasons for each trade and leave your impressions, insights and advice. i am sure both of us will benefit and i know that i will benefit
yes it is a crutch; it does not tell you anything new; you could just eyeball the chart. But i need a crutch so i use the averages; it helps give me confidence and confidence commitment is critical in trading If you need a walking stick or a crutch you had better use it and not feel ashamed
Well in contrast it adds new data, not market absolute data but subjective trader's views. Just look at S&P 500 now - 200-MA works good as a resistance level, there we and other traders can conclude that history works and perceive this indicator as working. Subjective traders views is also information and it becomes a kind of self-fulfilling prophecy when too many traders use it. The data which explains irrational behavior of investors is also important part of trading information to consider
The shortest distance between two points is a straight line - think a drag strip. That would be price. Moving averages on the other hand would be an undulating piece of asphalt. Much slooooower going. I prefer fast. Slow is good for Warren Buffett and Buffett wannabe's of the world.
i think definitely price action is the way to go while moving averages are use ful to see tghe context or past... if using only one then price action should be used. the past also may be seen by checking past PA so there may be no benefit in cluttering the mind with dupicate information This is the opinion of every trader here
There is no 'general' better choice. Which is better, a hammer, or a screwdriver? Answer: It depends.
Not just Buffett, the wannabe trader. MA cross-overs are a poor entry signal if you trade reversals because, yes, they lag. But I like to see short, medium and long MA's in the correct sequence before taking a trend-following position. This demands a delay between the price reversal and the correct stacking of the MA's, but in this case the delay is necessary and adds confirmation. I was happy to hear a well known hedge fund manager expounding this advantage of MA lag at an event 2mths ago.