Unmoved by moving averages

Article Abstract:

Investors using charts to analyse share price movements may consider long-term averages as a guide to future performance. These averages can trigger false signals and investors following them have to pay dealing charges, which reduce returns on their investment. Changes in 200-day averages may indicate more about past trends than about future performance. Rebounds picked up by averages may indicate longer term changes, but there is no certainty that this is the case.

Methods, Graphic methods

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Pointers to a mediocre February

Article Abstract:

UK share prices tend not to perform well in February each year, compared with their performance in Dec and Jan every year. Share prices have changed by over 10% six times in the 50 years to 1996, and this has tended to be at the start of a time of rising prices, or at the end of such a bull run. Share prices have also historically been weak for the second Monday of Feb if it is Feb 12 or Feb 14. There is no logical explanation for this trend, but it can be observed.

United Kingdom, History, Securities industry

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Getting the best from deviation

Article Abstract:

Charts can be used to spot trends in share prices, and deviation is a useful tool for assessing patterns. Monthly deviations can be calculated by dividing monthly values with averages for a year. Peaks can be identified after they have occurred, but are not always easy to identify at the time. Peaks may appear to have occurred before the price actually peaks. Bottoms may also be difficult to identify, but they can be useful signals to buy.

Statistics, Statistics (Data)

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