Moving Average

I did not mean to sound so negative. I just think moving averages are a waste. They are fine for guaging general market direction, but really you can do that by just looking at the price bars.

I think the concepts behind market profile is what trading is all about. I don't care if you are buying and selling lawn mowers or magic carpets in the front yard or if you are buying and selling T-bonds, markets move based on these inherent factors.

All I am saying is.....it is really amazing what capabilities the human mind can have when you really understand what is going on in the market. For example, are you buying at a fair price that is justified by the recent market participants. Are there enough customers to buy your lawnmowers at that price or does the market need to seek a new level to facilitate trade.

Like all traders, I relied heavily on indicators when I first started...but soon realized my bank account wasn't growing. Step back, and ask yourself what it is that your are buying and selling, why are you buying and selling it and most importantly....can you buy or sell it to someone else to make a profit for your business. Don't trade, just to trade.

Moving averages are like a crutch, they are easy to lean on for something to help you walk and they are easy to implement quickly. Step back and clear your screen of those damn squiggly lines.

SL





Quote from jgadefelth:

Sweetlettuce.

I think the profile changing al the time and i have i hard time catching up whit it. Do you know i better strategy and to use EMA? and how do you use market profile?

Regards
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There is only one average that I feel has any value and it is a huge one. If you must have a line on your chart figure out how to plot a line that reflects the

VOLUME WEIGHTED MOVING AVERAGE

This line reflects true value and shows the relationship of current sentiment to value.

SL
 
Please be quiet about that. I use VWAP, which I figure must be close to what you use. Couldn't live without it. Every once in a while I post that here to verify that most people think it's stupid. But please don't explain here why it works.
 
sweetlettuce

So i shall understanding the basic, to me it seems like hmmm maybee fundamentalanalysis why somone buys and so on?

Regards
 
Quote from John Merchant:

Please be quiet about that. I use VWAP, which I figure must be close to what you use. Couldn't live without it. Every once in a while I post that here to verify that most people think it's stupid. But please don't explain here why it works.
More...

Hmmm....

After you post something like this, you expect my curiosity to lay still? :p

Would either one of you care to explain in detail? :D

I'm curious b/c I use simple MA crossover as one of my signals...
 
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