Why correct moving average matters
Below there are two attached images for different moving averages in the period of the last 3 months for GoPro. [GPRO]
In those images you can see 8 different ways of calculating moving averages and the returns that are given from each method. In the first example we use MV7 (Moving average for 7 days) and in the other MV35.
Any moving average you use should be dynamically calculated to make sure you are using the correct moving average. In addition, the correct MV method should be selected, for example - Simple Moving Average [SMA] or Weighted Moving Average [WMA].
Some methods may work well in a rising market (that is currently trending), but not in a trend that is currently falling. Within our system we use dynamically selected MV's and are working on providing you with further information on how you can trade using MV as one of your strategies.
We hope you find this little sample interesting and keep supporting our work so we can grow and push our products to you even faster.