Monkeys and Moving Averages

In this episode of Thinking In Options, Bill Johnson explores one of the most overlooked questions in trading: Do you actually understand the indicators you use? Using the famous "five monkeys and a ladder" story as a framework, Bill examines how trading habits and beliefs can spread through the market long after the original reasoning has been forgotten. From MACD and RSI to Stochastics, many traders rely on technical indicators every day—but few can explain exactly what those indicators are measuring or why they should predict future price movement. Bill breaks down several of the most popular technical analysis tools, explains what their calculations really represent, and challenges listeners to distinguish between genuine understanding and simply following rules because "that's the way it's always been done." If you've ever used a chart indicator without questioning its purpose, this episode offers a fresh perspective on how traders think, learn, and make decisions in competitive markets. Subscribe for more episodes of Thinking In Options, where Bill Johnson explores the concepts, assumptions, and mental models that shape successful trading.