New Posts For Thread: Moving averageshttps://community.betfair.com/tradefair__financials/go/thread/view/94198/30395675/moving-averagesOne of the most extensively used indicators amongst chartists is the moving average.They also one of the most misleading in the way that they are drawn and used.Why are they never drawn correctly?If they were drawn correctly, that's half a span of thlet the protagonists consult their charts: make a prediction therefrom That would be difficult considering that I haven't offered any alternative to the moving average here. Even contrarian who defended the way they are usually drawn hasn't come outhttps://community.betfair.com/tradefair__financials/go/thread/view/94198/30395675/moving-averages?post_id=543658743#543658743let the protagonists consult their charts: make a prediction therefrom That would be difficult considering that I haven't offered any alternative to the moving average here. Even contrarian who defended the way they are usually drawn hasn't come outSun, 22 Feb 2015 07:44:25 -0600Fight!Therefore, let the protagonists consult their charts: make a prediction therefrom and we'll see who wins this argument in 25 days time.Chickens? Not these guys, Dr Crippen and Contrarian. Over to you..https://community.betfair.com/tradefair__financials/go/thread/view/94198/30395675/moving-averages?post_id=542810379#542810379Fight!Therefore, let the protagonists consult their charts: make a prediction therefrom and we'll see who wins this argument in 25 days time.Chickens? Not these guys, Dr Crippen and Contrarian. Over to you..Sat, 27 Dec 2014 13:29:22 -0600If say there was a monthly average, ( whether temperature, or rainfall or economic data ), there would be little question. You would stick your data point in the middle of the month. It's a graph - it's meant to show meaning to something in a graphichttps://community.betfair.com/tradefair__financials/go/thread/view/94198/30395675/moving-averages?post_id=542628627#542628627If say there was a monthly average, ( whether temperature, or rainfall or economic data ), there would be little question. You would stick your data point in the middle of the month. It's a graph - it's meant to show meaning to something in a graphicThu, 11 Dec 2014 14:47:44 -0600My last post should have driven home the point that any moving average is only valid up to a point half of its span back along a chart.So I can only think that people who routinely consult these moving averages when they are drawn incorrectly do nothttps://community.betfair.com/tradefair__financials/go/thread/view/94198/30395675/moving-averages?post_id=542582051#542582051My last post should have driven home the point that any moving average is only valid up to a point half of its span back along a chart.So I can only think that people who routinely consult these moving averages when they are drawn incorrectly do notMon, 08 Dec 2014 05:09:46 -0600I give up.https://community.betfair.com/tradefair__financials/go/thread/view/94198/30395675/moving-averages?post_id=542570623#542570623I give up.Sun, 07 Dec 2014 11:41:32 -0600To prove everything I say, and how generally misleading these moving averages can be when drawn incorrectly, I'll use a 50 day moving average and the FTSE100 chart to date to illustrate my point.On the 16 October this year when the FTSE 100 changed dhttps://community.betfair.com/tradefair__financials/go/thread/view/94198/30395675/moving-averages?post_id=542570361#542570361To prove everything I say, and how generally misleading these moving averages can be when drawn incorrectly, I'll use a 50 day moving average and the FTSE100 chart to date to illustrate my point.On the 16 October this year when the FTSE 100 changed dSun, 07 Dec 2014 11:26:07 -0600The last point on a 100 day moving average is using data from up to 100 days ago.It should no more be placed at the end of a chart than it should be placed at the begging. And it's also using data from 1 day ago. This, fundamentally, is why it belonhttps://community.betfair.com/tradefair__financials/go/thread/view/94198/30395675/moving-averages?post_id=542569777#542569777The last point on a 100 day moving average is using data from up to 100 days ago.It should no more be placed at the end of a chart than it should be placed at the begging. And it's also using data from 1 day ago. This, fundamentally, is why it belonSun, 07 Dec 2014 10:39:56 -0600Absolutely, but why would anyone want to know what the market was doing 100 days ago? But it doesn't just represent what the market was doing 100 days ago. It represents what it was doing from 1 to 200 days ago. Now you might not be interested in thhttps://community.betfair.com/tradefair__financials/go/thread/view/94198/30395675/moving-averages?post_id=542569671#542569671Absolutely, but why would anyone want to know what the market was doing 100 days ago? But it doesn't just represent what the market was doing 100 days ago. It represents what it was doing from 1 to 200 days ago. Now you might not be interested in thSun, 07 Dec 2014 10:31:37 -0600The last point on a 100 day moving average is using data from up to 100 days ago.It should no more be placed at the end of a chart than it should be placed at the begging. It is an average and the plotted line should be centred on the chart and folhttps://community.betfair.com/tradefair__financials/go/thread/view/94198/30395675/moving-averages?post_id=542569605#542569605The last point on a 100 day moving average is using data from up to 100 days ago.It should no more be placed at the end of a chart than it should be placed at the begging. It is an average and the plotted line should be centred on the chart and folSun, 07 Dec 2014 10:25:27 -0600Suppose I'm using a month-long graph of prices, and I want to look at the 200 day MA. According to you, this can't even be represented on my graph (because it should be placed at 100 days ago!).Absolutely, but why would anyone want to know what thehttps://community.betfair.com/tradefair__financials/go/thread/view/94198/30395675/moving-averages?post_id=542569531#542569531Suppose I'm using a month-long graph of prices, and I want to look at the 200 day MA. According to you, this can't even be represented on my graph (because it should be placed at 100 days ago!).Absolutely, but why would anyone want to know what theSun, 07 Dec 2014 10:19:27 -0600