facebookWhen using moving average indicators, whats the duration do you view for better accuracy? E.g. 5 years, 2 years, 1 year, 6 months, 3 months or 1 month? - Seedly

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Anonymous

18 Apr 2019

General Investing

When using moving average indicators, whats the duration do you view for better accuracy? E.g. 5 years, 2 years, 1 year, 6 months, 3 months or 1 month?

Discussion (7)

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Depends on the company, industry, investment horizon, and current economic climate. For a consumer defensive (non-cyclical) company that I would hope to buy and hold for income, I don't expect a lot of volatility in the long-term so I might be OK with using 200 day and 50 day MAs to identify buying opportunities. If there was, I dunno let's say... some major distruptive force in US politics and economics... then I might expect more volatility and use 100 day and 50 day MAs. For a highly volatile growth stock that I am looking to take quick profits on I might just use 20 day.

I used daily MA over a year period and weekly MA over a five years period. Not a trader but to estimate when to buy over the long term.

cctzjd

17d ago

Own time own target at Self Employed

Take a quick glance at everything...

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