I've noticed some folks leave their MA at 50 and 200 when using weekly charts...assuming incorrectly that they meant 50 and 200 day moving averages to be displayed....but no!
when changing daily to weekly charts, you also gotta conver the 50 and 200 day moving averages into their corresponding weekly numbers....namely,
50/5 = 10 week moving average, and
200/5 = 40 week moving average
Make this change in the box where you nomally enter the moving average indicator on stock charts...for example, in the stock picking contest, GNBT was picked by a member who posted a weekly chart and left the moving averages unchanged (at 50, 200). The chart's gonna then show the 50 week and 200 week moving averages instead of the daily averages.
here's a chart examples...the first chart is a daily chart with 20, 50 and 200 daily moving averages
the second chart is a weekly chart, but the moving averages were not converted to their respective weekly numbers...notice how the chart can give one the wrong picture.
Hey Vic,
Interesting point, I'm gonna agree and disagree with your post in the same answer:
1) Yes you are corrrect that in order to have a 50 or 200 day MA in a weekly chart you need to express the MA in number of weeks not days (stock charts that is) And many people doing their charting my not be aware of that.
2) However (and this is only my view point) I look at different time periods for charts to get a different perspective on the overall direction / trend within differing windows of time. So if you imagine your charts are time periods then whether it be daily, weekly or 5 minute you want to be able to view moving averages that guide relative to the time period. If you keep a 50 day MA in the daily and 10 week (50day) in the weekly you lose the differentiation between the 2 differing time periods (By definition looking at weekly you are trying to get a view on a longer period of time / trend and not have the same average just transposed from the daily because you already know that number). E.G I like the 9 time period MA in my charts and I use it in 5 min chart, daily chart and weekly chart, but I keep it as 9 as I want to view 9 time periods whether they be 5mins, days or weeks.
As with everything in TA, it is horses for courses.
Good Luck
Quote from: AussieTrader on April 23, 2006, 02:50:33 AM
(By definition looking at weekly you are trying to get a view on a longer period of time / trend and not have the same average just transposed from the daily because you already know that number).
Good Luck
You got it all right Aussie......The mainly use of weekly chart is TREND... (where is the TREND Going?)
Is it Bears gaining control or Bulls? That's the question right there, Check the Weekly Chart to find your answer. ;)
Goodluck pips!!!