Undestanding Moving Averages

[mose]

Originally Posted by jarret

I have been using the 10 Day moving average on the buy and just curious what everyone else has been using.

Phil says in his blog that if a stock has been in a down trend for a month or more, you should use the 30 or 50-day MA. A 10-day MA is not long enough to include the big picture in that situation. It is easy to get caught in a bear trap or to think that things are suddenly OK, when it might just be the calm before the storm.

mose

[agaliza]

Both. As the above poster notes, use the 30 and 50 day MA's to confirm the reversal of the movement. I learned this the hard way a few weeks back, so now I'm much more prudent.

[Greg]

I use the 10 day if the companies trend is sideways our moving up, and I use the 30 or 50 if the companies trend is going down.

[timorr]

asvi crossed the 50 day moving average. Any opinions? Where do you find the 30 day? Thanks , Tim

[pam32570]

I'd highly recommend Stockcharts.com. If I could figure it out, anyone could. You don't have to sign up or anything. On the main page, you enter your symbol, and it brings up the default charts. You then set the three charts up the way Phil does. I use a Slow Stochastics on the top, the middle is the moving average, and the MACD is on the bottom. I also change the candlesticks to a solid line so it looks like the diagrams in Phil's book. It is so accurate and easy to use! I've never bothered to mess with msn or yahoo.

[PWN]

I am experimenting with the 20 day and 30 day EMA's versus the 10 day and 30 day MA's. Prior to my interest in R#1 investing I never used an MA because they have more lag than the EMA. However, I may have a change in my use of MA's if the combination of 10 day and 30 day MA's prove to be better in terms of signalling a move up or down.

[jarret]

There is a good thread on ASVI in the homework examples section that you may want to review.

I have done a lot of research on ASVI and am very bullish about the company but I recommend that you have them send you an investor package (sign up on website) as will help you understand the company and prospects.

[django]

Here is a really good reason to use the 30ma to buy instead of the 10.
See posted chart:
http://www.simplenomis.com/sc.png

[jwhat]

For some reason the last spike downwards in that graph made me laugh.

[bigroof]

Originally Posted by AlexG

u use a 10 day MA to buy in and a 30 MA as an indicator

what does that mean, "a 30 MA as an indicator"?

thanks for all these comments. it seems like the three indicatiors are not always as simple as the book presents it. that's OK, I'm learning and the book got me started, that's the important thing