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January 28, 2021, 05:15:16 AM |
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Moving averages works great for trending markets. Basically they would help you alot when we started to rally from $14K all the way to $42K. However after we peaked in $42K it wouldn't help you anymore. Basically you would get chopped back and forth between going short or long. The same is for stock markets or forex. They work great if there is a strong trend, however that trend usually ends and either we trade sideways for months or a bear market starts.
If you can confirm the start of the bear market you can use moving averages to short again. So the issue is not that they are not reliable, they are reliable as long as you trade them correctly. Basically if you got other indicators telling you to long, then use moving averages to buy. If you got indicators telling you to short, then use the indicators to sell. No TA out there is ever 100% accurate and it will never be.
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