moey_dw wrote: ↑
Fri Oct 29, 2021 11:42 pm
what makes u love moving averages so much?? seems u always compare them to subwindow indicators like oscillators etc....... do u find ma's the most reliable analyisis tools or just preference
I think RplusT is right in saying that trendlines (and trustworthy support&resistance-lines) are the most reliable tools (but it is not always easy or obvious how to draw them & as yet they still have to be drawn by hand...).
(Whoever comes up with the indie that draws reliable trendlines on all charts automatically is bound to be rich in no time).
MAs - the way I see/use them - could be called adaptive trendlines. I think they are 2nd best.
Many oscillators I am a fan of, for example Jurik Volty bands or Double CCI with SMA, tendentially give similar signals to the MAs but (advantage!) tend to give them in both directions fairly quickly and clearly (whereas with MAs you have to wait till price has crossed all relevant MAs etc.)
I think everyone should use the ones he/she feels most comfortable with (because - in the end - they are only as good as your inputs allow them to be).
Whenever I compare indicators I am not interested in visuals, algorithmic formula, or whether many people like to use them. The only thing that interests me is: signals.
Do they produce better or worse signals than my benchmark (for example: MAs)?
I have found that no indicator I have tested gives better signals than a well drawn trendline.
Some indicators give as good signals as MAs (MrTools; csj179t) but many lag a lot (to be honest: quite a few that are thought to be by Mladen - originally. Of course, this could also be due to a totally different trading style).