Questions about Chart Periods

Hey!

I can not find anyplace else how much is 1 period, for instance, regarding Moving Average.
If I want to look at MA which shows how it has changed during the last month, how many
spans should I chose?

Thanks!

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Originally Posted by ;

The query and the response are misleading. Studying a monthly chart, if you choose a 30 period moving average, you will find a plot of the normal price of the previous 30 months. If you want to play with moving averages, better to set it at (1) and different intervals around, say, (200), and then observe the way the lines reflect the way the price moved. The 20ma is popular because it shows a rolling month of trading on the daily chart.

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I disagree....do not play about with settings before you trick your mind into thinking that the market reacts to a random line.


Consider the reasons why Averages are used, and why this could be beneficial for anyone trying to make sense of random-like data.


Here's your asnwer to your question= a time is an observation, in our cases according to time frames it's usually composed of the closing price.

If you are using a 1 minute chart a 60SMA would be adding up the last 60 closing prices divided by 60 getting an average of 60 minutes.

If you are looking at a daily chart then each peariod is the closing day of the daily candle therefore a month would be approximately 21 or 22 because we don't trade all 30 days I think is more like 5.5 days or so from the week that the market is open.

If you want me to explain further then let me know.

If you are Taking a Look at a monthly chart then for the average you could use (hi low)/2 some do (hi lo close)/3

Both the question and the answer are misleading. Looking at a monthly chart, if you choose a 30 period moving average, you will get a plot of the normal price of the previous 30 months.

If you would like to play with moving averages, top to set it at (1) and various intervals up to, say, (200), and observe the way the lines signify the way the price transferred. The 20ma is a favorite because it shows a rolling month of trading on the daily chart.

Quote:

---

Originally Posted by ;

The query and the response are misleading. Studying a monthly chart, if you opt for a 30 period moving average, you'll get a plot of the normal price of the preceding 30 months. If you would like to play with moving averages, top to place it (1) and various periods up to, say, (200), and watch the way the lines reflect the way the price transferred. The 20ma is a favorite since it displays a rolling month of trading over the daily chart.

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This.

The interval basically will depend on the TF you're using. Hourly chart = MA of the previous x (user input) hours. Daily = MA of the previous x days. So on Etc.

Hi Captialfm,

If you are viewing a monthly chart then 30 periods, if you are viewing a hourly chart then 30*24 = 720 periods and so forth.

Good luck,