Is 30 day moving average a better indicator than 20 or 50 days moving average?
In several Q&A 30 day moving average is mentioned as a technical indicator to follow. I have seen 10, 20, 50 and 200 day moving averages more commonly used.
Answers
3127 points
EthanR answered 11 months ago …
There is no "better" moving average to use, it just depends upon your time frame. If you are a short term trader, then you will want to use the shortest moving averages possible, such as 5, 10, 13, or 20. If you are an intermediate term trader, the 30 and 50 might help you more. Long term traders will look at the 50 as well, but mainly the 200 day.
I like to look at several moving averages when trading, ie. to take a macro look first at the 200 day, then to go in closer to 50, 20, 5. That gives me the long term trend, as well as the short term. All moving average information is useful!
1786 points
ChaosNantuko answered 11 months ago …
I personally pay most attention to the 200, 50, and 30 day. 30 day for the actual trade (i look for bounces off the 30 day), and 200 and 50 day to be sure about trend strength.
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ChaosNantuko answered 11 months ago …
On top of what i said previously, its important to keep in mind that not all stocks behave the same way with the moving average. When it comes to support/resistance and moving averages, stocks can behave differently. Some stocks have a tendency to consistently bounce off the 30 day moving average, while others tend to dip all the way to the 50 day moving average on a pullback. The 200 and 50 day moving averages almost always serve as support/resistance, but other then those 2, when using other moving averages on a stock, you should look to see if that specific moving average would have been effective over the last year, or if it is, for the specific stock your examining, almost meaningless.
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314 points
Ifly answered 11 months ago …
As an addition to the great answers above. The 50 & 200 day MA are used by the big funds. Some actually have rules that will not let them trade stocks that are below their 200MA. Which is why it is such a strong support level, and once it is broken it takes a while for them to recover.
Ifly
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