I get asked a lot about moving averages. Many people think they are this incredible indicator that will lead to riches. Unfortunately, they’re the furthest thing from that. These are just invisible lines that people like to paint different colors to exaggerate their meaning. There are all different kinds of moving averages: some are shorter-term, some are longer-term, some give more weight to recent prices while others are equally weighted. I like to say that if you have enough moving averages on your screen, one of them will work!
Today I’d like to share with you in simple terms how I use them: [Read more…]