Moving Averages:

Okay we are going to talk a little bit about moving averages. A lot of people plot moving averages on their charts and they look at either the simple moving average or an exponential moving average and a lot of times they also combine moving averages to compare what’s happening with moving averages and when the quicker moving average crosses over the longer-range moving average they consider that a bullish sign when it when the faster moving average drops below the longer moving average they consider that a bearish sign.

My opinion is that hardly means anything at all and you’re focusing on the wrong things if you’re using that, but if it makes you feel comfortable go ahead and put it on your charts. I don’t think you need it but I think when you’re first starting out it’s nice to have indicators on your charts because they give you some confidence. Once you gain a lot of experience you will probably have relatively few, if any, indicators on your charts.