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:
“We learn through experience and experiencing, and no one teaches anyone anything. This is as true for the infant moving from kicking to crawling to walking as it is for the scientist with his equations. If the environment permits it, anyone can learn whatever he chooses to learn; and if the individual permits it, the environment will teach him everything it has to teach.”
—Viola Spolin (b. 1911)
“Whether or not his newspaper and a set of senses reduced to five are the main sources of the so-called “real life” of the so- called average man, one thing is fortunately certain: namely, that the average man himself is but a piece of fiction, a tissue of statistics.”
—Vladimir Nabokov (1899–1977)