You’ve probably heard of moving averages, but do you know how to use them? This post will help get you up to speed.
The examination for the possible existence of predictive power in the moving average trading rule has been used extensively to test the hypothesis of weak form market efficiency in capital markets. This work focuses mainly on the study of the variation of the moving average (MA) trading rule ...
Every 50-day moving average trade should be protected with a stop-loss order. Nothing is sure in stock trading. The 50-day moving average strategy is no different. In the long-term, we expect the price action to continue in the direction of the breakout. However, there will be cases whe...
Follow stock market trends – Moving AverageIn my previous post, I described how to build a dynamic stock chart that lets you easily adjust the date […] Functions in 'Statistical' category The AVERAGE function function is one of 73 functions in the 'Statistical' category. AVEDEV | AVERAGE...
Follow stock market trends – Moving AverageIn my previous post, I described how to build a dynamic stock chart that lets you easily adjust the date […] Functions in 'Statistical' category The AVERAGE function function is one of 73 functions in the 'Statistical' category. AVEDEV | AVERAGE...
Momentum trading is perilous, the main issue is that the operation can be implanted in both directions. Brokers that acquired the asset can turn around and start selling it, starting a wave where other desperate sellers attempt to get rid of the stock, effectively lowering prices, moving the ...
One type of MA isn't better than another. An EMA may work better in a stock orfinancial marketfor a time, and at other times, an SMA may work better. The time frame chosen for a moving average will also play a significant role in how effective it is (regardless of type). Image by...
Like all moving average indicators, EMAs are much better suited fortrending markets. When the market is in a strong and sustained uptrend, theEMA indicator linewill also show an uptrend and vice-versa for a downtrend. A vigilant trader will pay attention to both the direction of the EMA line...
The volume should be lower in the case of a pullback in a stock or market than it is when the price is moving in the direction of the trend, typically higher. Lower volume indicates that traders don't have much conviction in the pullback and it may suggest that the market’s upward ...
The concept of mean reversion is widely used in various financialtime series data, including price, earnings andbook value. When an asset's currentmarket priceis less than its average past price, it's considered attractive for purchase. Conversely, if the current price is above the average, it...