Moving averages

[DarthSidious]

I find MAs not very good in telling me what trade to put on and where. But they are usually good in telling me what not to do. In other words, they don't help me making smart decisions, but keep me from making dumb ones when I listen to them

 

[nazzdack]

Quote from athlonmank8:
They're widely used though.

1) Widely used doesn't mean it has any value.
2) Those who use moving averages want the market to follow the moving average when in fact "it's the other way around". The moving average "confirms", "after the fact", what has already occured in the market.
3) When have you ever met anybody who bragged about the money they made with a moving average based system?.....Never.

 

[spd]

Quote from DarthSidious:

I find MAs not very good in telling me what trade to put on and where. But they are usually good in telling me what not to do. In other words, they don't help me making smart decisions, but keep me from making dumb ones when I listen to them

Exactly.

 

[Now is Now]

Quote from The Big D:

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

If you want predictions...go to a fortune teller...

EMA 's can be useful if applied correctly..

Not a great fan though.


NiN

 

[trackstar]

Quote from DarthSidious:

I find MAs not very good in telling me what trade to put on and where. But they are usually good in telling me what not to do. In other words, they don't help me making smart decisions, but keep me from making dumb ones when I listen to them

Great post.

 

[BSAM]

Quote from tomahawk:

I will respectfully disagree.

Please refer to your own post on page 2 of this thread. (1-27-10 @ 7:02 P.M.)