What is better: using a simple moving average or price action?

P

padutrader

Price action is better for the gurus,teachers vendors, because it takes years to learn and they get paid during that time
Moving average is better for the trader because it takes less than a day and there is no ambiguity or judgment required
 
traderGOD said:
Price action is better for the gurus,teachers vendors, because it takes years to learn and they get paid during that time
Moving average is better for the trader because it takes less than a day and there is no ambiguity or judgment required
More...

Would you say one method has an edge over another method? If so, which one and why?
 
The problem with averages and most technical indicators is that they lag. Essentially, averages are all filters. When you filter data, you're throwing out information. So therefore, a system based only on moving averages loses a lot of information compared to someone who is looking at the raw price data. A better reason though is that because it's so simple to use a moving average, just about anyone can do it. If you're doing what everyone else does, you have no edge. That said, there are some moving averages that have some significance. For example, the 200 day simple moving average on the SPX has provided support a few times this year.
 
traderGOD said:
Price action is better for the gurus,teachers vendors, because it takes years to learn and they get paid during that time
Moving average is better for the trader because it takes less than a day and there is no ambiguity or judgment required
More...

If you were to drive from Seattle, Wa to Sarasota, Fl, would you get directions ever few miles or have a map? In days of old on wind sailing ships, maps were called charts, they usually always steered by the stars, so there be star charts.
http://www.pbs.org/wgbh/nova/ancient/secrets-of-ancient-navigators.html

The trouble with just learning moving averages is you be taking trades when the charts are showing reversals, you be taking trades when chart is showing the medium highs are in, or where support/resistance is, there are at least 100 points at a minimum for me of when not to take otherwise good signals, and learning is an ongoing activity on charting. But once learned, you have it a lifetime.

Actually, all the indicators I use lag, lagging reduces trading and longer your study indicators, you will learn where the highs/lows are most likely to turn. And using what everyone else is use, that depends on one's definition of "everyone", if it is retail-no edge, if commercial-I want to tailcoat, volume drives price.
 
traderGOD said:
Price action is better for the gurus,teachers vendors, because it takes years to learn and they get paid during that time
Moving average is better for the trader because it takes less than a day and there is no ambiguity or judgment required
More...
Gee, wow....it broke the 200 day MA....I bet I can short it before GS, Citadel, Steve Cohen....
 
ET180 said:
The problem with averages and most technical indicators is that they lag. Essentially, averages are all filters. When you filter data, you're throwing out information. So therefore, a system based only on moving averages loses a lot of information compared to someone who is looking at the raw price data. A better reason though is that because it's so simple to use a moving average, just about anyone can do it. If you're doing what everyone else does, you have no edge. That said, there are some moving averages that have some significance. For example, the 200 day simple moving average on the SPX has provided support a few times this year.
More...
see my trades and technique which i have posted in many threads

tell me where is the lag?
 
maximumpossiblesuffering said:
Would you say one method has an edge over another method? If so, which one and why?
More...
you can do things simply or you may make it complicated.

i feel moving averages may be learned faster,please see my posts in numerous threads where i have described how i use moving averages explained in detail in charts, bar by bar;apologies to Al Brooks:D
 
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