Assertion in thread title: "Moving Averages are Random"
Nope.
Q3D: You got some ideas, but people on this site are either expert traders or people who have been at this game for a very long time (5k++ hours up to decades). In such a forum it is imperative to be very precise and provide some arguments of value/insight. This argument about MAs is at best interesting, as a fleeting thought, but most of us are long beyond the stage of belief in the "magical MA to solve our trading problems". Many many places people discuss which MA is correct, but not here. So when you try to assert what most of us already know, at least try to be more precise, or it becomes too boring arguing about semantics and different ideas of definitions.
Ie. instead of posting all at once, try posting in your favourite texteditor. Then try to refine your ideas, until you believe them presentable. Maybe, just maybe, you get more ideas to explore too!
Solution to this discussion:
Moving averages are the average of prices for the period chosen, not random. They may be used as a tool whenever you don't have a better tool in order to "draw a line in the sand", but are far from the only - or even best tool in the toolbox. Given the right analysis, MAs may be used or may be used loosely as a directional tool, though shifting responsibility of edge into something else in the trading plan.
Why MA, why not percentiles, max, min, or gazillion other mathematical formulas, which by themselves without foundation and plan, have little to no edge?
If someone can make MAs work, good for them!
... So, that would be completely unnecessary and you could say nothing and just "take full advantage" of the alledged randomness of the market.
