Big money for Brokers, Fail for everyone else
Now i will speak about Moving Averages and why dont use them. Almost on every broker site you can see use indicators to make BIG MONEY on stocks exchange. But truth is opposite only broker will make big money on YOU! Why because indicators are made from mathematical algorithms which are solidly builds. What does it means i will better show you that on some screenshot example. I will not show you all Moving Averages cause there are Many Moving Averages. I will show you the most popular Moving Averages.
Moving Averages
Simple Moving Average
How to use this indicator ? If candlestick is under SMA (simple moving average) then you are going into short position (short positon = sell). If candlestick is up SMA (simple moving average) then you are going into long position (long position = buy).
Screenshot from IQoption.com application Time frame 1Minute GBP/JPY
1.Circle
What is bad you can see candle stick is under SMA soo you will wait for another candle stick. If it will be under also then you are going into short position. But another candle stick is going to up and there most of you will close the trade because its really near SMA.
2.Circle
Everyone can see what is bad here. First you are waiting for going up bud its going down and its in circles down,up,down...
3.Circle
It's almost as same as 2.circle again down,up,down...
4.Circle
Candle stick went trough and now you are waitting for another candle stick. Also another candle stick was possitivly upside. Now you are going to long position. But another (third) candle stick is going down. Now again most of you will close trade cause you psychology and instinct.
Summary
Most of you now can say It's not very helpful use indicators after this show. Indicators are here only for be one time up with your wallet and then down. And now you are asking why ? I will tell you about this in Next Articles.
I'm Warning you !!
I'm not responsible for your money loses !! I'm here just for make estimates ! The trade depends on you You can just inspirate from me !! But if you lose money i will not give you money back and noone will! Stocks exchange is very hazardous have that in mind ! I'm not guarantees accuracy of any content and hence using information on this website is solely your responsibility.
Disclaimer
That all decisions the trader takes itself, and all indicated is not advice and a guarantee of profit
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