| DEC 1992
Letters To S&C by Technical Analysis, Inc.
Letters To S&C by Technical Analysis, Inc. GANN-DO ATTITUDE Editor, January's article, ""The Gann Quarterly Chart,"" was the best article I have read in nine months. I can use it for buying and selling mutual funds for long-term investing. I would appreciate more articles simply written with actual buy and sell dates for long and intermediate investing. Could you explain the difference between a 50-day moving average and a 10-week moving average? DAVID PORTNEY Staten Island, NY The moving average, a mathematical procedure to smooth or eliminate the fluctuations in data, emphasizes the direction of a trend and confirms trend reversals, thereby assisting the user in determining when to buy and sell. The simple moving average is the arithmetic mean or average of a series of prices over a period of time. The longer the period of time studied (i.e., the larger the denominator of the average), the less impact an individual data point has on the average. To find a five-day average, take the sum of the prices from days 1 to 5 and divide by 5. Repeat and plot for a moving average. The 50-day moving average uses 50 data items (the daily closes), whereas the 10-week moving average uses only 10 data items (the Friday closes). In effect, the 50-day average provides more information and may pick up on trend changes sooner, but the 10-week may filter out false breakouts and other misleading data spikes that may occur during the week. —Editor
by Technical Analysis, Inc.
Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99
To continue reading, sign-up for trial access to Traders.com and the S&C Archive — 37,000 pages of trading ideas!
After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.
Not a subscriber to Technical Analysis of
STOCKS & COMMODITIES magazine?
Click
here to subscribe, or request
a trial subscription.
Log-in now to view articles from the S&C Archive.
Your Subscriber ID is located at the top of your magazine label, highlighted here in red.
Your last name can be found on the second line, highlighted here in blue.
*If you have a company name on the label, that can also be used. It will appear below your name on the label.
If you do not have a Subscriber ID on your label, you can find it on your statement or renewal form.
For help locating your Subscriber ID number, please call us at 1-800-832-4642 or send an email to Survey@Traders.com. If sending an email, please include your name and mailing address.