The Investor Sentiment - Equity and investments forum for Sri Lankans
Search
 
 

Display results as :
 


Rechercher Advanced Search

Latest topics
» Trading Journal
Tips to use moving averages indicator to make stock buying & selling decisions EmptyToday at 12:15 pm by lanka

» Dividend Announcement
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Sep 13, 2019 4:24 am by Rana

» Performance of the Market-Weekly
Tips to use moving averages indicator to make stock buying & selling decisions EmptyThu Sep 12, 2019 7:58 pm by ruwan326

» කැසිනෝ ව්‍යාපාරික රවී විජේරත්න, අර්බුදයට පත් MTD Walkers මිල දී ගැනීමට සැරසෙයි
Tips to use moving averages indicator to make stock buying & selling decisions EmptyMon Sep 09, 2019 7:47 pm by nihal123

» Happy Birthday
Tips to use moving averages indicator to make stock buying & selling decisions EmptyMon Sep 09, 2019 10:54 am by nuwanmja

»  Rajgama Heroes !
Tips to use moving averages indicator to make stock buying & selling decisions EmptySat Sep 07, 2019 10:24 am by කිත්සිරි ද සිල්වා

» Yahoo mail
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Sep 06, 2019 5:38 pm by Rana

» Thread for News on International Markets
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Sep 06, 2019 9:50 am by The Invisible

» JINS.N0000 ( Janashakthi Insurance PLC)
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Sep 06, 2019 9:47 am by The Invisible

» Browns Investments update
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Sep 06, 2019 6:00 am by sanjulanka

» Hayleys MGT
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Sep 06, 2019 5:55 am by The Invisible

» SEYB.N0000 ( SEYLAN BANK PLC )
Tips to use moving averages indicator to make stock buying & selling decisions EmptyThu Sep 05, 2019 8:47 pm by soileconomy

» Tourism Sector
Tips to use moving averages indicator to make stock buying & selling decisions EmptyThu Sep 05, 2019 6:08 pm by NIRMALSG

» CLND Not to miss
Tips to use moving averages indicator to make stock buying & selling decisions EmptyWed Sep 04, 2019 9:42 pm by sureshot

» Thread for News on CSE and SL Economy
Tips to use moving averages indicator to make stock buying & selling decisions EmptyWed Sep 04, 2019 6:35 pm by NIRMALSG

» TJL.N0000 (Textured Jersey Lanka PLC.)
Tips to use moving averages indicator to make stock buying & selling decisions EmptyTue Sep 03, 2019 6:12 pm by Ethical Trader

» UBC Union Bank of Colombo
Tips to use moving averages indicator to make stock buying & selling decisions EmptyTue Sep 03, 2019 12:09 pm by The Invisible

» Obituary Notice.
Tips to use moving averages indicator to make stock buying & selling decisions EmptyMon Sep 02, 2019 10:34 pm by කිත්සිරි ද සිල්වා

» Thread for News on Local and Foreign Politics
Tips to use moving averages indicator to make stock buying & selling decisions EmptySat Aug 31, 2019 5:13 pm by The Invisible

» Sri Lanka bank profitability under pressure: Moody’s
Tips to use moving averages indicator to make stock buying & selling decisions EmptySat Aug 31, 2019 8:44 am by The Invisible

» ‘වැඩකාරයාගේ නමත් සිරිසේන’ කියලා හිනාවුණා
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Aug 30, 2019 4:05 pm by sanjulanka

» 8000 Post Club | Celebration of a Great Milestone කිත්සිරි ද සිල්වා
Tips to use moving averages indicator to make stock buying & selling decisions EmptyThu Aug 29, 2019 7:17 pm by කිත්සිරි ද සිල්වා

» In the Meantime, Within Our Shores !
Tips to use moving averages indicator to make stock buying & selling decisions EmptyThu Aug 29, 2019 10:37 am by කිත්සිරි ද සිල්වා

» Sri Lanka to call for bids to develop Mannar Basin natural gas find
Tips to use moving averages indicator to make stock buying & selling decisions EmptyTue Aug 27, 2019 4:32 pm by nuwanmja

» “බිරිඳගේ සහ පෙම්වතියගේ වෙනස මොකක්ද?”
Tips to use moving averages indicator to make stock buying & selling decisions EmptySun Aug 25, 2019 11:51 pm by sanjulanka

» The Central Bank of Sri Lanka Reduces its Policy Interest Rates
Tips to use moving averages indicator to make stock buying & selling decisions EmptySat Aug 24, 2019 4:26 am by Ethical Trader

» JKH - 155/00 Breakout is pending
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Aug 23, 2019 2:21 pm by pjrngroup

» Tokyo as at 21.08.2019 Morning
Tips to use moving averages indicator to make stock buying & selling decisions EmptyWed Aug 21, 2019 10:07 am by nisashi

» අනං මනං! #/+?.<>
Tips to use moving averages indicator to make stock buying & selling decisions EmptyTue Aug 20, 2019 8:18 pm by ruwan326

» What Would You Do?
Tips to use moving averages indicator to make stock buying & selling decisions EmptyMon Aug 19, 2019 1:02 pm by කිත්සිරි ද සිල්වා

» Back of the Legends
Tips to use moving averages indicator to make stock buying & selling decisions EmptyMon Aug 19, 2019 10:13 am by Topcat

» NTB.N0000 (NATIONS TRUST BANK PLC)
Tips to use moving averages indicator to make stock buying & selling decisions EmptySun Aug 18, 2019 10:33 pm by lanka

» Melstacorp (MELS)
Tips to use moving averages indicator to make stock buying & selling decisions EmptySun Aug 18, 2019 8:33 pm by The Invisible

» Cargills (CARG)
Tips to use moving averages indicator to make stock buying & selling decisions EmptySun Aug 18, 2019 8:26 pm by The Invisible

» DOCK.N0000 (COLOMBO DOCKYARD PLC)
Tips to use moving averages indicator to make stock buying & selling decisions EmptySun Aug 18, 2019 8:18 pm by The Invisible

» SHL.N0000 (Softlogic Holdings PLC)
Tips to use moving averages indicator to make stock buying & selling decisions EmptySun Aug 18, 2019 8:14 pm by The Invisible

» SAMP.N0000 (SAMPATH BANK PLC)
Tips to use moving averages indicator to make stock buying & selling decisions EmptySat Aug 17, 2019 12:44 pm by nuwanmja

» CFVF - First Capital
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Aug 16, 2019 9:58 am by CK

» Ceylinco Insurance CINS
Tips to use moving averages indicator to make stock buying & selling decisions EmptyWed Aug 14, 2019 9:18 am by The Invisible

» HNB.N0000 ( Hatton National Bank PLC)
Tips to use moving averages indicator to make stock buying & selling decisions EmptyWed Aug 14, 2019 9:15 am by The Invisible

» NDB.N0000 (NATIONAL DEVELOPMENT BANK PLC)
Tips to use moving averages indicator to make stock buying & selling decisions EmptyWed Aug 14, 2019 9:11 am by The Invisible

» LIOC.N0000 (Lanka IOC PLC)
Tips to use moving averages indicator to make stock buying & selling decisions EmptyMon Aug 12, 2019 2:55 pm by xmart

» HAYL.N0000 Hayleys PLC
Tips to use moving averages indicator to make stock buying & selling decisions EmptyMon Aug 12, 2019 1:43 pm by CK

» PABC.N0000 (Pan Asia Banking Corporation PLC)
Tips to use moving averages indicator to make stock buying & selling decisions EmptyMon Aug 12, 2019 1:33 pm by The Invisible

» Grain Elevators
Tips to use moving averages indicator to make stock buying & selling decisions EmptyMon Aug 12, 2019 1:31 pm by The Invisible

» Sri Lanka sets US$3.5bn tea export target for 2030
Tips to use moving averages indicator to make stock buying & selling decisions EmptyMon Aug 12, 2019 1:27 pm by The Invisible

» Tea: July 2019 national average shows gains month on month
Tips to use moving averages indicator to make stock buying & selling decisions EmptySun Aug 11, 2019 9:19 pm by Topcat

» OSEA .N
Tips to use moving averages indicator to make stock buying & selling decisions EmptySat Aug 10, 2019 6:40 pm by The Invisible

» Sri Lanka mulls reforms to punish 'errant' plantation companies
Tips to use moving averages indicator to make stock buying & selling decisions EmptySat Aug 10, 2019 6:33 pm by The Invisible

» JKH.N0000
Tips to use moving averages indicator to make stock buying & selling decisions EmptySat Aug 10, 2019 11:38 am by The Invisible

September 2019
SunMonTueWedThuFriSat
1234567
891011121314
15161718192021
22232425262728
2930     

Calendar Calendar

Disclaimer


Information posted in this forum are entirely of the respective members' personal views. The views posted on this open online forum of contributors do not constitute a recommendation buy or sell. The site nor the connected parties will be responsible for the posts posted on the forum and will take best possible action to remove any unlawful or inappropriate posts.
All rights to articles of value authored by members posted on the forum belong to the respective authors. Re-using without the consent of the authors is prohibited. Due credit with links to original source should be given when quoting content from the forum.
This is an educational portal and not one that gives recommendations. Please obtain investment advises from a Registered Investment Advisor through a stock broker

Tips to use moving averages indicator to make stock buying & selling decisions

Go down

Tips to use moving averages indicator to make stock buying & selling decisions Empty Tips to use moving averages indicator to make stock buying & selling decisions

Post by nihal123 on Mon Feb 22, 2016 2:48 am

We have explained several trends, ways to identify them and benefit from their reversals. The moving average, which is another powerful tool, is the average of closing price for a specified time period and is plotted along with the price chart. It is also called the rolling average, rolling mean, or running average.


Assume that you want to calculate 10 days' moving average. For this, the first 10 days' closing price is added and divided by 10, and this value is plotted along with the closing price on the tenth day.

On the eleventh day, you have to recalculate the average by dropping the first day and adding the eleventh day. This process is repeated every day (adding the twelfth day's price and dropping the second day's price, and so on).

As is evident from the chart (see Moving averages) moving averages help smoothen the trend by weeding out the noise from day-to-day price movements and give traders a clear view of price trends. This is very easy and is done on the basis of the direction of moving averages. It's an uptrend if the moving average is climbing and the current price is more than this. Similarly, a falling moving average with a lower price means it's a downtrend.

Pairs of moving averages can also be used to identify the trend, which means that it's an uptrend if a short-term moving average is higher than the long-term moving average, and it's a downtrend if the short-term moving averages is lower than the long-term moving average.

The short-, medium- and long-term trends are measured on the basis of appropriate moving averages. For example, a 200-day moving average is considered a long-term indicator (one year). Similarly, 50/100-day moving averages are used for medium-term trading (3/6 months), and 10/20-day moving averages for short-term trading (less than a month).

http://articles.economictimes.indiatimes.com/2013-02-11/news/37039398_1_averages-short-term-trend-long-term-investors
nihal123
nihal123
Top contributor
Top contributor

Posts : 5720
Join date : 2014-02-24
Age : 53
Location : Waga

Back to top Go down

Back to top


 
Permissions in this forum:
You cannot reply to topics in this forum