There is nothing wrong with using simple moving averages and indeed they are one of the most popular indicators. The problem is, most traders cannot identify the market conditions correctly and so use them in the correct way. We use the sea states to describe price action in the market, and in trending markets they work perfectly – but in congestion phases they are almost useless, and have little value. Understanding and recognising the price action is therefore key, and once understood the humble simple moving average becomes a valid and valuable tool in your trading armory.