Trend lines and moving averages are ones of the most widely used tools in technical analysis. Wherever you look - all publicized analysis has some trend line or moving average of sorts (further in the article – TL and MA). Even major banks love them. So how did I came up with such “preposterous” conclusion, stating that MA's and TL's better to be ignored in technical analysis!?
The Big Conspiracy. I’m not a big fan of conspiracy theories, but when it comes to something delusional that masses believe (or just don’t bother to think more deeply about) and for other side doesn’t cost much physically or financially to maintain that delusion (like games in politics for example), than why not? It’s not necessarily some specific person’s or a specific group’s evil plan – just a natural flow of common believe which formed “ages” ago. And no one with a true knowledge is interested to break that delusion as himself makes a living from this common understanding.
Major banks basically are Market Makers (for their clients – directly, and for the rest of the FX participants – indirectly). Because they always take other side of your trade, the conflict of interest happens of course. And it doesn’t…
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