Moving Averages are the most used Indicators to generate trading signals. Here in this small analysis, I want to find out, which one amongst them generates the faster and the correct signal.

Here I have taken the Chart of Dish Tv:

In the below series of Charts, I have plotted different Moving Averages to find out which one amongst those gives a faster signal than Price Action.

I have used a combination of MA’s like 10/50, 8/50, 5/50, 5/13, 8/13, 5/10, 8/10, 50/200, etc.

Moving Average 10 and 50, no buy signal yet.

Moving Average 8 and 50, no buy signal yet.

Moving Average 5 and 50, no buy signal yet.

Moving Average 5 and 13, no buy signal yet.

Moving Average 8 and 13, no buy signal yet.

Moving Average 5 and 10, no buy signal yet.

Moving Average 5 and 20, no buy signal yet.

Moving Average 50 and 200, no buy signal yet.

Here in all the above charts MA’s failed to give a Buy signal. Whereas Price Action based strategy generated a Buy signal right at the bottom of the chart, as indicated in the below chart:

And the outcome was a sharp rally in Dish Tv, as indicated in the below chart:

The Conclusion is, Price Action concept is a Leading Strategy. And can generate signals where, Moving Average Strategies fail. It also provides precision-based Entry, Stop-loss and Target.

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