Email of the day (2)
Comment of the Day

March 05 2013

Commentary by Eoin Treacy

Email of the day (2)

on moving average parameters
“Question RE: the Moving Average chart function

“When adjusting the moving average (MA) option for the charts, what is the correct periodicity for the 200 day MA?

“For weekly charts, is it 52 (i.e. 52 weeks in a year) For monthly charts, is it 12 (i.e. 12 months in a year)

“For daily charts, I understand it would obviously be 200. I have always been confused about how to enter the 200 day MA for the monthly and weekly charts.

“Thanks in advance for your reply and for your responsiveness to my prior queries.“

Eoin Treacy's view Thank you for this question which comes up from time to time. We calculate our moving averages once a day and these are then applied to every chart regardless of whether the period is daily, weekly or monthly. If you wish to see the average of one year's data then 200-days is the accepted norm. In other charting packages this would equate to 40 weeks on a weekly chart.

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