Moving Averages are Great Trading Tools

I like moving average signals for their power and simplicity in my trading and here is why:

1. Moving averages are a way to smooth price action and quantify a trend.
2. Moving averages are tools that can work on any time frame.
3. They can remove your predictions and opinions from your trading and replace them with moving average signals.
4. Unlike trend lines, moving averages are quantifiable facts not left to interpretation.
5. Moving averages are simple to use in back testing systems.
6. You can combine moving averages for crossover systems that are good at filtering out noise and volatility.
7. Many legends mentioned moving averages in their trading like Ed Seykota, Jerry Parker, and Paul Tudor Jones.
8. Moving averages are better gurus to follow than the talking heads on financial television.
9. You can’t argue with their facts. Either price is above or below them.
10. They have made me a lot of money during trends.

Here are my three moving average books: