In order to make sure that we all are talking about the same time periods, the following table indicates equal trading time periods. Days of trading are the only absolute measure, everything after that is a mathematical extrapolation.
DAYS WEEKS MONTHS QUARTERS
89 = 17.8 = 4.1 = 1.4
377 = 75.4 = 17.4 = 5.8
521 = 104.2 = 24.1 = 8.0
610 = 122.0 = 28.2 = 9.4
There are two types of averages commonly used for trend indication. The simple and the exponential. I am using the ones calculated by STOCKCHARTS.
The chart below indicates two different TRENDS dependent upon the Moving average you use.
In commenting on charts it is always IMPORTANT to know which average is being used.
http://stockcharts.com/c-sc/sc?s=$SPX&p=D&yr=20&mn=6&dy=0&i=p92914999281&a=186204698&r=7996.png
Edited by mss, 18 December 2009 - 10:37 AM.
