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

The market is only about 10% 'un-random'... you need the most direct information to read that 10%.... a 1-degree derivative like the MA is gonna just kill any edge you have.
 
dozu888 said:
The market is only about 10% 'un-random'... you need the most direct information to read that 10%.... a 1-degree derivative like the MA is gonna just kill any edge you have.
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i have shown results of a win rate of 100% trading with moving averages please see my posts in the thread https://www.elitetrader.com/et/thre...d-on-moving-averages-thoughts-on-this.320733/
i have also described in detail with full explanation, using charts, my technique.
Using moving averages to enter can give you very high win ratios , provided you use them properly
The only drawback is that you need to wait for your trade to set up properly
 
traderGOD said:
where do moving averages show reversals? do not consider crossovers...there are many other ways to use moving averages
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I did not post that moving averages show reversals, I said charting shows reversals.

"The trouble with just learning moving averages is you be taking trades when the charts are showing reversals, ... "
 
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
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I find PA and MA all have their own uses. PA is more useful as a tool to deduce short term direction of where the price is going. MA is used more as a confirmation tool where the price has gone. Both are ambiguous in their own way and both would take a long time to completely master. And both need other technical analysis tools or even news/fundamental factors to confirm as neither is 100% reliable on their own.
 
Handle123 said:
I did not post that moving averages show reversals, I said charting shows reversals.

"The trouble with just learning moving averages is you be taking trades when the charts are showing reversals, ... "
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thanks for the clarification
i am not sure i suggested learning only moving averages .....
if "all" moving averages are going in a particular direction,which is unambiguous and easy to judge,you cannot go much wrong if you trade that direction
the problem is that such unambiguous moving average configuration does not occur all the time and you have to wait for long periods for that ideal situation that traders shift to much less sure methods.
 
i must clarify that i use moving averages in a certain and specific way as described by me in detail in my other posts in various threads
 
JSOP said:
I find PA and MA all have their own uses. PA is more useful as a tool to deduce short term direction of where the price is going. MA is used more as a confirmation tool where the price has gone. Both are ambiguous in their own way and both would take a long time to completely master. And both need other technical analysis tools or even news/fundamental factors to confirm as neither is 100% reliable on their own.
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see the live chart of uerusd below? do you think that moving averages are showing where the price has gone? or where it is going?
here both moving averages and price action are SHOUTING the same thing

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i think it is very important to trust your strategy or analysis something that does not come easy

my point is that for me i have found it is very much easier to trust a moving average signal than a price action one.
 
traderGOD said:
can you explain that using charts
i have explained everything about my technique by using charts: see my posts in various threads
please explain using charts so that i and all others will benefit.
Thank you
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I have read your previous threads, man they are hilarious, sorry
 
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