{"id":439388,"date":"2026-10-06T01:40:05","date_gmt":"2026-10-05T18:40:05","guid":{"rendered":"https:\/\/www.swingfish.trade\/blog\/market-news\/you-have-to-believe-in-something-why-i-trust-the-100-and-200-moving-averages-439388\/"},"modified":"2026-10-06T01:40:05","modified_gmt":"2026-10-05T18:40:05","slug":"you-have-to-believe-in-something-why-i-trust-the-100-and-200-moving-averages","status":"publish","type":"post","link":"https:\/\/www.swingfish.trade\/blog\/market-news\/you-have-to-believe-in-something-why-i-trust-the-100-and-200-moving-averages-439388\/","title":{"rendered":"You Have to BELIEVE in something: Why I trust the 100 and 200 moving averages"},"content":{"rendered":"
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In trading and in life, you need to BELIEVE in something.<\/p>\n

You might believe in your spouse or your children. You might believe in your faith. If you are an athlete, you need to believe in yourself and your team, especially when things are not going your way.<\/p>\n

Traders need to believe in themselves and their abilities too. But where does that confidence come from?<\/p>\n

For me, it starts with having a way to trade that makes sense. Something I can see, understand, and apply consistently. Something that helps me define my risk, limit my risk, and accept my risk.<\/p>\n

That is why I believe in technical analysis. It is the foundation of what I teach on InvestingLive.com.<\/p>\n

Taking that a step further, I believe traders need a set of technical tools they trust. That trust should have a basis. You want to SEE those tools \u201cdo what they are supposed to do.\u201d Does the price react at a level? Does a break lead to momentum? If a break fails, does that failure tell you something useful?<\/p>\n

For me, two of those tools are the 100- and 200-period moving averages.<\/p>\n

Why those two?<\/p>\n

I did not choose them because a best-fit analysis or an AI model told me they would produce the most profitable results. I am sure someone can sift through enough data and find that a 62-period moving average worked best over a particular stretch. But I wanted tools I could understand, watch, and use consistently.<\/p>\n

My interest started with a simple observation: When someone on a business channel discussed technical analysis, the 100- or 200-period moving average often entered the conversation. That got my attention.<\/p>\n

What kept my attention was watching the price react around those levels.<\/p>\n

Over time, I saw how the two could work together. A move above or below one moving average can give an initial signal that the bias is shifting. A break of the second can help confirm that shift. If the price cannot sustain the break, that tells me something too. Buyers or sellers had their shot, and they could not get the job done.<\/p>\n

When the two moving averages converge and the price trades back and forth around them, that can tell me the market lacks a clear trend. It puts me on alert for the next shove. Which way will the price break, and can it stay there?<\/p>\n

That is useful information.<\/p>\n

Believing in a tool does not mean expecting it to work every time. It means understanding what it tells you\u2014and recognizing when the price tells you your trade idea is wrong. A moving average gives me a reference point for making that decision.<\/p>\n

In my book, Attacking Currency Trends, and in my commentary on InvestingLive.com, I explain and demonstrate those ideas. And yes, the tools apply to other markets too.<\/p>\n

At a minimum, my job is to make you aware of them. My bigger goal is to help you understand them well enough to recognize good trade location and manage the risk when an opportunity arises.<\/p>\n

In the video above, I explain some of that thinking. There is more to it, and I also use moving averages alongside trendlines, swing areas, and Fibonacci retracements.<\/p>\n

But it is a starting point for understanding why I BELIEVE in these tools.<\/p>\n

Watch how the price behaves around them. Learn what a successful break looks like. Learn what a failed break tells you. Let what you see build your confidence.<\/p>\n

That is how belief becomes part of a trading process. <\/p>\n

You have to BELIEVE in something. <\/p>\n

This article was written by Greg Michalowski at investinglive.com.<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

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