When, Why, & How to Use Moving Averages
10/08/2013 6:00 am EST
Many get confused not only about moving averages but about when or if to use a certain indicator. Over 170 indicators exist today and I thought I had to learn how to use them all. I laugh about this today about 15 years later after going through my testing period. Trading and investing do not have to be complicated and most make it much more so than it needs to be.
Despite all indicators powered by price and volume, it's still a good idea to watch some of the most commonly followed ones. Because traders look for and create, by their actions, self-fulfilling prophecies, putting together some simple concepts to help identify those potential moves can be helpful.
Don't let moving averages or any indicator distract you from being objective in your analysis using price and volume as your major determining factor to get into a trade. on In this five-minute video, Ron will show you an example of how you can improve your trading very quickly.