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Strategies & Market Trends : Rolling Averages, Their ins and outs and ups and downs

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To: Drygulch Dan who wrote (2)12/28/1999 11:11:00 AM
From: nasdaqian  Read Replies (1) of 31
 
Drygulch,

Why did you pick these particular values? Do they seem to work for crossover signals? The problem I have with M.A.s is that they vary, or need to vary, according to the particular stock you are looking at. Due to time constraints I don't play much with short term charts like 6 month dailys. Mostly I like minimum 1 year weekly charts and even like 5 yeaar monthly charts on bigger (more liquid) issues and then narrow down to weekly and daily for buy or sell timing. But, I've limited my indicators to MACD (a form of moving average as you know) and stochastic because I'm lazy and these seem to work over more issues with standard settings. I do have activated on one of my particular charting softwares M.A.s of 20, 50 and 150 periods. These periods correspond to the daily, weekly or monthly periods (or units as you mentioned) active on the chart at the time. Why these values, I don't know. I initially picked 150 long ago because Investors Business Daily uses a 200 day M.A. on their charts and I wanted a slightly more reactive one. The others, 20 and 50, go figure. It all seems rather arbitrary anyway. Ideally, it seems to me, would be software that could scan a bunch of stocks, select three moving average values that work best over a certain period of time for each stock and period and automatically set those values whenever the particular stock/period is selected or automatically scanned for certain events, like crossovers.
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