RE: Bitcoin value26 Jun 2021 22:01
MA Disadvantages
Moving averages are calculated based on historical data, and nothing about the calculation is predictive in nature. Therefore, results using moving averages can be random. At times, the market seems to respect MA support/resistance and trade signals, and at other times, it shows these indicators no respect.
Moving Averages. “One major problem is that, if the price action becomes choppy, the price may swing back and forth, generating multiple trend reversal or trade signals. When this occurs, it's best to step aside or utilize another indicator to help clarify the trend. The same thing can occur with MA crossovers when the MAs get "tangled up" for a period of time, triggering multiple losing trades.”