<<60-day INTC daily chart with 50-day MA>>
<This is a little confusing. With this setting, you should only have 10 data points since it needs the first 50 bars to make the first computation. FWIW I use a 50 day EMA religiously on my dailies.>
Sorry about that, Alan. I don't know why I said 60-day -- it's really a 750-day chart!
<Don't ignore popular averages, such as the 20, 50 and 200 day SMAs when creating MARs. They provide an easy framework for quick digestion of a large number of stock charts. Even if these old war-horses aren't part of your system yet, watch them to measure the crowd you're trading against.>
Yes!
<Focus on the common belief that short-term trends won't violate the 20-day MA, while intermediate and long-term impulses find support at the 50 and 200 day MAs.>
That's exactly the kind of dope I'm looking for. Thank you!
From what I've been studying lately, the 50-day SMA appears to be the indispensable classic. (Why 50 days?) It seems that if one were to have only a single MA, the 50-day would be it (intermediate-term). After that, it appears to me that the 200-day is the most universally agreed upon (long-term).
After that, however, there seems to be a variety of opinion on what makes the best short-term MA. 20-day is popular, but so is 21-day. AIQ TEP seems to prefer a 28-day as the most valuable short-term MA. I've seen preferences expressed for all sorts of numbers under 20. My question is not what's the best short-term MA, but what's the most popular? Which one is the most significant? My guess: the 10-day.
Thanks for the food for thought (Moving Average Rainbows).
ig |
