Fatal error of forex and bitcoin trading with Moving average

In the world of trading we often encounter price movements that seem irregular but actually the price movement is very regular and has a pattern. This I have already mentioned in my writing about Price Movement. But On this occasion I will discuss more detail about the Movement price with Moving average.

Why Moving Average?

Moving Average is a tool or indicator that is able to detect Trend on a Market.Moving average price often in use on forex chart. Not just in forex. At pegitakan price Bitcoin Also moving averages are often in use by users. Please Visit previous post on Moving Average. Trading Success with Moving Average.

In the picture above is an example of Trending Moving average. Blue line shows Tranding UP and Red Lines Shows Tranding Down. Quite easy way to read it. With a moving average trader able to determine where the price moves and a lot of traders to open a position for trading with a Moving Average guidance. I have tried Trading within 1 month or 20 days with Moving average indicator with setup trading as follows

• BUY: if the price is above Moving average.
• SELL: If Price is below Moving average

Within 20 Trading days with the Moving average indicator and the trading setup I wrote above. I get 60% profit and 40% LOSS. So I get 10% profit from capital. Try to prove yourself by looking at chart history using moving average. Surely you will be able to compare the profit with Lossnya.

If we look in more detail why the moving average often gives a false signal and gives a late signal? This is a question that is often asked in the forum. I give an example in the picture below.

In the picture above which in the red circle is the false signal that I found on the moving average indicator. So often traders are trapped in this kind of movement. Therefore traders use the oscillator indicator to detect the false signal provided by the moving average. But I think using an oscillator indicator to help the moving average is a big mistake when analyzing the chart. Why this is a big mistake. Because using an additional oscillator on a moving average will be confusing to its users. An event like this is not a weakness of the Moving Average indicator but we misapply and use it. We often forget the price movement that shows FLAT where the price is being consolidated. When the price is in a Consolidated Condition I suggest to use a larger Timefarame. Because the larger timeframe shows the real trend