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:
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Moves on: nor all your Piety nor Wit
Shall lure it back to cancel half a line,
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—Edward Fitzgerald (1809–1883)
“If the average citizen is guaranteed equal opportunity in the polling place, he must have equal opportunity in the market place.... The flag and the Constitution stand for democracy and not tyranny, for freedom, not subjection.”
—Franklin D. Roosevelt (1882–1945)