In this video, I am going to explain my reasonings on why I personally don't use MA/ in my analysis.
I will start off by saying that I have nothing against traders who use them and are consistent and profitable.
I am sure there are many who do use indicators in their analysis along with their trading plan, risk management that find success in trading in given marker conditions.
For me, my trading style focuses on price action structures/patterns. I am analyzing the market in its pure form of movement.
In order for me to be clear on the price action, I need to “remove” all sorts of other “noise” on the chart.
This is when having MA/ , and other common indicators can create potential issues for my style of trading.
When we have indicators on the chart, it normally does help traders to identify “trending” markets, overbought/sold, as an example.
The most used ones such as MA/ are going to help traders to find trends of continuations, but it doesn't necessarily become a target or for the price to bounce off.
Many find trading through such an “area” would be not ideal, hence they can take profit or target that general area.
While, some can use that as a stop loss area, so long the price will “reverse” from it.
However, when I see the price action on the HTF is in the impulsive phrase of the market conditions, on the LTF the indicators will not “catch up” to the most current price conditions.
As the indicators are calculated based on the price movement, and since an impulse pushes up/down the price very aggressively, it takes time for them to take the movement into its equations and move according to it.
The important thing is to not “overload” your chart with too many indicators and lines going across. There will be too many “contradicting” biases and it will confuse you as a trader. Simplicity is best, and less is more.