Moving averages

[CollegeTrader]

Do you trade with moving averages. lately ive been going with out just pure PA and TA just want to see what other traders are doing.

 

[The Big D]

I've never seen any evidence that they have much predictive power, and I've looked.

 

[bmwhendrix]

Why do you need to predict?

 

[nazzdack]

Quote from CollegeTrader:
.....moving averages......

1) Do you attend Ohio State or Penn State?
2) Moving averages work "well" in a trending market, not so in a sideways market. They are a lagging indicator at best.

 

[tomahawk]

Quote from bmwhendrix:

Why do you need to predict?

Maybe so he can decide whether to go long or short?

(edited)

 

[tomahawk]

Quote from nazzdack:


2) Moving averages work "well" in a trending market, not so in a sideways market.

Sure they do ... just the opposite way.

 

[TheGoonior]

I determine the trend using moving averages (strictly EMA) because I find it easier to quantify it numerically, However my actual entry to pull the trigger is always based on price action.

 

[tomahawk]

Of course nothing is perfect. But MA's can be very effective for long periods of time.

 

[IronFist]

Quote from tomahawk:

Of course nothing is perfect. But MA's can be very effective for long periods of time.

Until you get to a choppy period.

It's easy to show a MA and a trendy section of chart and say they are profitable. Indicator vendors do it all the time to try and make their shitty systems look profitable.

Just saying.

 

[spd]

I like looking for a retracement to the 21ema for counter-trend trades. Thats the only squiggly line I have anywhere on my intraday charts.

I certainly dont use it to predict nor do I use it for any concrete entry/exit/stop. That line is just an area of interest to me, nothing more.