RE:RE:RE:RE:RE:RE:When world investor sentiment changes then TA charts don'tMy problem is, as you posted earlier, SMA doesn't work for some cases, because they bounce around too much.
I think what eternally* is getting at (besides burning off some angst?) is that SMA only works for stocks in steady lengthy trends. If I understand correctly, SMA is essentially a momentum play. A trader recognizes that a chart looks strong, and buys in until the daily or weekly closes below the SMA. In the background, what's really going on (what the chart is saying) is that there is a strong capital flow into that share.
I think what sets eternally* off is that the hypothesis can't be disproven: that is, the investor sells any share that violates the SMA, so that particular issue cannot be used to disprove the thesis. In other words, it works because we are only considering the cases in which it worked.
It's credible to me that SMA works for pro traders, both in and out of currency trading. But I messed with SMA a bit, and it didn't work for the smaller juniors (as you'd said it wouldn't), so I shelved it for future study.