Yes, it works. And it works very well — if you know how to use it.
Most beginner traders abandon MA after the first losses because they use it 'like everyone else': one 200 SMA and 'buy when the price is above'. This is a recipe for deposit depletion in today's market.
But when you combine moving averages wisely — they turn into one of the most stable bases for a profitable system.
Here is what really works now (tested on live accounts in 2024-2025):
🔥 Simple and effective EMA strategy (my favorite for trending markets)
Timeframe: H4 or Daily
Tools: any liquid pairs/stocks/indices
Settings:
200 EMA — defines the global trend
- Trade ONLY with the trend! Above 200 EMA — only long, below — only short.50 EMA + 20 EMA — dynamic support/resistance zone
10 EMA — the 'trigger' line for precise entry
Conditions for entering long (short mirror):
Price above 200 EMA (uptrend)
A pullback occurs to the zone between 20 and 50 EMA
Waiting for 2–3 tests of this zone (the more — the stronger the signal)
Entry on the third (or next) bounce + closing of the candle above 10 EMA
Stop-loss: 1.5–2 ATR below the last swing
Take-profit: when the price closes above 50 EMA (or trailing by 20 EMA)
Results on BTC/USD, EUR/USD, NAS100 for 2024–2025 — from +38% to +87% per year with a maximum drawdown of ~15–20%.
Why does this work?
200 EMA filters out 80% of the noise
The zone between 20–50 EMA is the 'core' of the trend, where the price returns again and again
Many tests = accumulation of positions by large players - powerful impulse after a breakout
⚠️Conclusion:
Moving averages — not an 'outdated' tool. This is the foundation upon which the most profitable systems in the world are built (including many HFT algorithms).
The question is not whether MA works.
The question is — can YOU prepare it correctly 😏
Crypto strategy ‘3 EMA + Parabolic SAR’ — a simple and effective system for trending markets
