Forgive the Dickens reference ( another one follows ) yet there is no best or worst of times to write this.

 

I have a big problem with moving averages. 200MA -100MA on any timeframe are bunk to me. I say this with small pressure of my tongue in cheek as it’s not easy being a forex rebel.

My intention is not to become the most hated guy in Forex ( feel free to berate me in the comments below ). My purpose is merely to offer a civil forum and open debate on why lagging indicators such as moving averages are so respected as a tool in todays markets.

Depending on which surveys you believe. 90 – 97% of us humble retail traders lose money.  I was privy to a survey last year that stated 90% of retail traders use or deploy moving averages in their personal charting — So they obviously work huh ?.

Yes. They can act as a self fulfilling prophesy and you can see the occasional bounce from a MA, especially if you have a cluster from different timeframes. My simple rule for the 200 – 100 MA’s is – Above both = bullish – Below both = bearish. That is where my love affair with MA’s begins and ends ( or would begin IF I could be bothered to give them chart room ).

If you use MA’s within a system then you have my utmost respect. I can never be that robotic, but I know traders personally that use these systems and seem to work the markets well. I can also see the irony in my argument against Moving Averages in that a high percentage of traders use charts. …..So anyone of us who uses a chart as a trade guide is a percentile loser from the inception of our trades .

There’s no going back for me now . I hope to remain a successful trader . One of the few ( if surveys are to be believed ) that does not rely on imaginary friends. The most important aspect of charting is to realize who our trading friends really are.  If you are new to trading…….. Question everything and learn which friends to trust .

Horatio Dubsly

Horatio Dubsly

Collects more scalps than Crazy Horse and newly crowned Bitcoin top calling master.
Philosophy: "Trading rules.....it most certainly does"

Read how Horatio got into trading here
Horatio Dubsly

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