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:
“O what venerable and reverend creatures did the aged seem! Immortal Cherubims! And young men glittering and sparkling Angels, and maids strange seraphic pieces of life and beauty! Boys and girls tumbling in the street, and playing, were moving jewels. I knew not that they were born or should die; but all things abided eternally as they were in their proper places.”
—Thomas Traherne (1636–1674)
“One cannot develop taste from what is of average quality but only from the very best.”
—Johann Wolfgang Von Goethe (1749–1832)