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 (2)

What are your thoughts?

Billy Ko

Billy Ko

25 Mar 2019

Development & Acquisitions Manager at REPE Firm

Moving average, like any other technical indicator should not be use independently. A 1 year moving average may indicate a buy but a 5 year moving average may indicate a sell. As what Gabriel mentioned, the smaller the MA date, the more sensitive the moving average so your action points will be more frequent, but if you're an investor looking at something more long-term and a stronger sign of action, it'd be recommended to look at longer MA's instead

Gabriel Tham

Gabriel Tham

25 Mar 2019

Tag Team Member at Kenichi Tag Team

There is no moving average that is "better" than the other. The most commonly used ones are 20 MA, 50 MA, 200 MA. Each have their own pros and cons. 20 is more for shorter term support, if the trend is strong the 20 MA will be supporting or resisting well.

50 MA is kind of like medium term and 200 MA is to see a longer term trend.

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