If you follow MAs blindly, ie entry and exit on the crossover, over the long term, in a trending market you would make good profits. But you would have to be in for the long haul, and maybe suffer large drawdowns
Then again, in a trending market you don't need much help :cheesy:
The difficulty is to identify the trend. Your time frame is important to your trading style.
I used Point and Figure breakouts for a while but as the market became less volatile, I was getting whipped all the time. False breaks were bleeding me. Too many small losses.
Had to change style:cheesy:
oatman, if you dont mind me asking, what do you use if you dont use indicators?
I generally don't use anything. The chart is a picture of the market. Different markets behave in different ways. You must look at their characteristics. I use trendlines to easily show support resistance/levels, new hilos, breakouts, gap fills all in conjunction with volume, time, depth of market as well.
Which market are you looking at? Study it and you'll see it has some characteristics that repeat themselves. Put an MA on and follow it. It doesn't matter if it doesn't work. It makes you concentrate.
Just look at one instrument and you will get a "feel" for it.
Good luck, let us know.
