Tackle Today: In Praise of Moving Averages | Tackle Trading

≈ If you must pick one indicator, make it this one. ≈

Traders,

The world of charting is littered with indicators. There are hundreds of them. And every year, tinkering traders add another few dozen to the pile. A little tweak here, a slight shift there, and voila! a new custom indicator is born.

We joke that a great many of these chart studies are created in the redundant department of redundancy. Because all they do is re-hash the message already being broadcast by price, they are, in most cases, unnecessary. We’re on a mission to declutter charts and simplify the art of technical analysis. If you haven’t already, spend some time viewing and reviewing our Technical Analysis 101 series to understand the bedrock principles.

That said, there is one indicator that our coaches find indispensable: the moving average. Over the next few days, we will highlight why these smoothing mechanisms are so darn sexy and how they can help you make better trading decisions.

#TeamTackle

Chart of the Day Indicator Abuse

Like a drug, charts can be misused and abused. This is an example of a poor ticker whose price is being suffocated by too many indicators. The signal is lost amid the noise.

Video of the Day What are Moving Averages

In this clip from the Coaches Lounge, Coach Mark expresses his love for moving averages.

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Originally published at https://tackletrading.com on December 29, 2020.