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You see it on every chart.
Every brokerage platform practically defaults to it. Most trading courses mention it. And yet… most traders still don’t know how to actually use it.
We’re talking about moving averages — and on Friday’s Profit Panel, the team broke down why they matter, how they’re misused, and what most traders get dead wrong.
“People always want to know what’s going to happen next,” said Geof Smith. “But if you’re not watching the averages, you’re not seeing the wave. And if you miss the wave, you chase it… and that’s where the damage happens.”
It’s a familiar story: A stock starts to move. Momentum kicks in. You jump on — only to get in just as the move stalls or reverses.
According to Jeffry Turnmire, that kind of frustration often comes down to a simple mistake: watching price without watching how it’s behaving relative to the averages.
“I’m long UCO right now, but only because it’s hugging that 2023 support line and sitting just under my breakout level. I’m not chasing this unless it clears that zone.”
That takes things from relying on just a gut feeling to having a structure built around an easy visual cue that a moving average gives you.
For UCO right now, Jeffry says $73 crude is his line in the sand, and he won’t risk capital until it confirms above.
Geof added that the same approach helps him frame trades in energy and metals week by week, not trying to catch a falling knife, but waiting for setups to “ride the wave.”
One Line. Better Timing. Fewer Regrets.
What makes this insight so valuable is that it applies to every market — whether you’re looking at oil, Bitcoin, gold, or momentum stocks like NVDA or AMZN.
And if you’ve ever found yourself getting stopped out just before the move resumes, or chasing breakouts that turn out to be fakeouts… It’s probably because you’re entering without an anchor.
That’s what moving averages provide, when used correctly.
We’ll be talking more about this on the show. And if you're serious about improving your timing, it's worth making this a part of your toolkit.
To your prosperity,
The ProsperityPub Team | |
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