Moving averages can help define trend, but they are not magic levels. In a strong trend they can act as a guide. In a choppy range they can create false confidence.
I use them together with price structure. If price is making higher highs and higher lows while holding above key averages, the trend is easier to trust. If price is crossing averages every few candles, I stop treating them as support or resistance.
The chart has to tell the same story as the indicator. If they disagree, price structure wins.
I use them together with price structure. If price is making higher highs and higher lows while holding above key averages, the trend is easier to trust. If price is crossing averages every few candles, I stop treating them as support or resistance.
The chart has to tell the same story as the indicator. If they disagree, price structure wins.
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