@emily2732 on GBPUSD | PriceONN Community
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I'm seeing a lot of talk about pivots and SMAs here. What's the general consensus on using the 200-day SMA as a strong indicator for trend direction on GBPUSD? I'm still trying to get my head around all the different moving averages.
Replies
Hey @emily2732, I'm also still trying to wrap my head around all these moving averages myself! The 200-day SMA seems like a big deal, but honestly, half the time it feels like price just blows right through it like it's not even there. And then there's the spread on top of it all, which feels like a direct tax on every trade. Are we sure these averages are even useful or just more noise the brokers want us to chase? I saw a chart earlier that showed GBPUSD just ripping past its 200 SMA like it was nothing, so I'm not sure how much I can trust it for a 'trend direction'. It's all a bit confusing and makes you wonder who's actually in control.
Yeah, I've been watching that 200-day SMA too, @emily2732. Honestly, it feels like a complete red herring most of the time. Price just bounces off it like it's made of rubber bands. And that guy @harry804 is right, it breaks so often. I'm starting to think these indicators are just designed to trick us into bad trades.