Moving Average
Market timing often looks at various moving averages. Popular are the 50- and 200-day moving averages. Some people consider that if the market has gone above the 50- or 200-day average that should be considered bullish, or below conversely bearish. Technical analysts consider it significant when one moving average crosses over another. The market timers then predict that the trend will, more likely than not, continue in the future. Others say, "nobody knows", and that world economies and stock markets are of such complexity that market timing strategies are unlikely to be more profitable than buy-and-hold strategies.
Read more about this topic: Market Timing
Famous quotes containing the words moving and/or average:
“People’s tongues are like grass, moving this way and that according to the direction of the winds.”
—Chinese proverb.
“Japanese food is very pretty and undoubtedly a suitable cuisine in Japan, which is largely populated by people of below average size. Hostesses hell-bent on serving such food to occidentals would be well advised to supplement it with something more substantial and to keep in mind that almost everybody likes french fries.”
—Fran Lebowitz (b. 1975)