The correct way to use moving averages: not just MA crosses or MA touches
The correct way to use moving averages is, above all, to eliminate the fluctuations of market perception
If you use them for that purpose, it becomes difficult for the originally technically-focused blind-trade believers to use
which is how the concepts of MA cross and MA touch were born
Put simply
Bollinger Bands were meant to be used merely as a trend recognition tool
but they have come to be perceived as if they are only for counter-trend trading
In the first place, Bollinger Bands are easy to incorporate into judgments when chasing a trend
or more precisely, they provide signals that are appropriate for “letting the trend run”
because they use a standard deviation, σ
This is related to the break in Dow Theory
Therefore, they are quite effective when you are letting the trend run
Moving averages
Even with an MA touch you can keep up with the market
but when the market itself strengthens its trend
it tends not to touch the moving average anymore, which you can see from past markets
In true trending markets, MA touches are not very functional
and as soon as you touch the MA you often lose momentum
and point in an unfavorable direction
On the other hand, with MA cross, in recognizing trends
it tends to hinder the recognition of the trend
If a trend market progresses cleanly, it will clearly indicate
but such markets are not often encountered
MA cross is therefore a weak type of signal
In the first place, technical analysis itself tends to generate such noise
So as a signal, technical analysis is not very effective
Therefore, technical analysis essentially has little meaning
most patterns are just incidental where support and resistance happen to work
Even if you can prove these later with technicals
that proof only shows that such movement occurred
Ultimately, in the market there is no analysis or judgment besides price and time, and no need for anything else
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