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

Display results as :
 


Rechercher Advanced Search

Latest topics
» Thread for News on CSE and SL Economy
Tips to use moving averages indicator to make stock buying & selling decisions EmptyYesterday at 10:22 pm by nihal123

» Devolution of power, civil wars, altruism, nepotism in animal world
Tips to use moving averages indicator to make stock buying & selling decisions EmptyYesterday at 10:15 pm by Backstage

» අනං මනං! #/+?.<>
Tips to use moving averages indicator to make stock buying & selling decisions EmptyYesterday at 9:06 pm by ruwan326

» East West properties
Tips to use moving averages indicator to make stock buying & selling decisions EmptyWed Oct 16, 2019 12:06 pm by yellow knife

» RCL - Royal Ceramics
Tips to use moving averages indicator to make stock buying & selling decisions EmptyMon Oct 14, 2019 12:47 pm by seek

» Performance of the Market-Weekly
Tips to use moving averages indicator to make stock buying & selling decisions EmptySat Oct 12, 2019 4:29 am by ruwan326

» Confidence to boom after election – CBSL Governor
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Oct 11, 2019 4:09 pm by Backstage

» Sri Lanka among top 20 rising stars of world trade
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Oct 11, 2019 4:08 pm by Backstage

» CLND Not to miss
Tips to use moving averages indicator to make stock buying & selling decisions EmptyThu Oct 10, 2019 9:24 am by ruwan326

» Dividend Announcement
Tips to use moving averages indicator to make stock buying & selling decisions EmptyWed Oct 09, 2019 4:59 pm by Rana

» අපි නොදන්න ගීතයක කතාව
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Oct 04, 2019 11:55 am by nuwanmja

» මූඩීස් ප්‍රකාශය පිළිගන්න බැහැ – මහ බැංකුව කියයි
Tips to use moving averages indicator to make stock buying & selling decisions EmptyWed Oct 02, 2019 6:46 am by nihal123

» ආර්ථික වර්ධනය 2.7% ට බසී
Tips to use moving averages indicator to make stock buying & selling decisions EmptyTue Oct 01, 2019 1:29 pm by nihal123

» Ranil agrees to give Sajith candidacy - AdaDetana
Tips to use moving averages indicator to make stock buying & selling decisions EmptyThu Sep 26, 2019 5:05 pm by mymoney

» Cracks in the Real Estate Sector
Tips to use moving averages indicator to make stock buying & selling decisions EmptyThu Sep 26, 2019 2:44 pm by chutiputha

» Films - To Watch List
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Sep 20, 2019 8:38 am by Topcat

» ෆිනෑන්ස් බලපත්‍රය අවලංගුයි. අද සිට මුදල් ව්‍යාපාර බැහැ
Tips to use moving averages indicator to make stock buying & selling decisions EmptyFri Sep 20, 2019 7:53 am by serene

» DOCK.N0000 (COLOMBO DOCKYARD PLC)
Tips to use moving averages indicator to make stock buying & selling decisions EmptyThu Sep 19, 2019 4:33 pm by nuwanmja

» Easter Sunday Attack and Sri Lanka
Tips to use moving averages indicator to make stock buying & selling decisions EmptyThu Sep 19, 2019 12:49 pm by Ethical Trader

» Trading Journal
Tips to use moving averages indicator to make stock buying & selling decisions EmptyWed Sep 18, 2019 9:01 am by CK

» Thought for the day...
Tips to use moving averages indicator to make stock buying & selling decisions EmptyTue Sep 17, 2019 5:44 pm by sashimaal

» 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

» 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

» 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

» 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

October 2019
SunMonTueWedThuFriSat
  12345
6789101112
13141516171819
20212223242526
2728293031  

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 : 5769
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