RE: Beginners Questions
(2015-02-08, 05:04 PM)keithbin Wrote: re: moving average type? apologies if this has already been asked/answered; if so I must have missed it. What MA type do you guys use? In Stan's book he talks of a simple MA but the chart examples reflect weighted MA's - and of course these days exponential seems to be all the rage.
Thoughts on this? Does it really make much of a difference? With investing not so much I guess, but trading?
It is a frequently asked question, but is my fault for not having a frequently Asked Question page set up. Which I will sort out one day. Maybe I'll do a small ebook of the SA basics if I get time one day.
Anyway, I started off using the weight MA's as in the book examples. But after questioning Stan and studying the more recent Global trend Alert (GTA) Newsletters that he produces, simple moving averages are what he recommends using. As the weighted MA's were only in the book examples as that's what the Mansfield charts at the time used. So on your weekly charts just use a 10 and 30 week simple MA. And on the Daily charts he uses the 50 day, 150 day and 200 day MA's.
See the first post in the Stage Analysis Study Guide - Questions and Answers thread for marked up examples of how we have the weekly and daily charts setup on the Stage Analysis board.
isatrader
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.
Fate does not always let you fix the tuition fee. She delivers the educational wallop and presents her own bill - Reminiscences of a Stock Operator.