Volume-adjusted moving averages by Richard W. Arms Jr.
ARTICLE SYNOPSIS ...Volume-adjusted moving averages by Richard W. Arms Jr.
A moving average line is just that. It smoothes price over time, reducing erratic, shorter-term swings to a smoother, more comprehensible line. Any changes in the parameters of the moving average line, such as the time involved, the weighting, the offsetting of the print and so forth, are only attempts to make the smoothing more informative. However, there has been no real change in that the analysis is still dependent on only two factors: the price of the stock, commodity or average being studied, and the time period.
This is not to say...