This post is aimed at the beginner trader (and those on the Veterans Trader Project).
Many times newbie traders are sold a story (and a strategy) that Moving Averages are the only way to trade. They are sold dreams of fortunes to be made on trading a moving average cross-over strategy. If only it was that easy!
Where MA’s do hold value for me is a) confirming the strength of a trend (or its lack of) or b) acting as the level of dynamic support and resistance that offers me an opportunity to trade a pullback. Finally they can be useful to help create larger patterns for us to trade.
So this is a quick video on how we use moving averages as indicators of dynamic support and resistance. I include an example from this evening where its been very clear on the major US Indices on a 15 min chart. Its part of what will be covered in Stage 3 of the VTP
Watch and learn!
February 15, 2016
FXTrader Paul, Trading, Trading Edcuation, Trading Education, Trading Set-ups, Trading Videos, Veterans' Trader Project