There is often a lot of debate regarding Moving Averages amongst the Technical Analysis community. The first debate is regarding which time period is the best. Any number of time periods can be used to figure out the average, which has led to as many theories about Moving Average choices as there are time periods to choose from.
So why do some people use 10 or 20-period moving averages while others use 50 or 200-period moving averages? I will answer this question in a bit but there is another debate as to which TYPE of moving average to use. This makes the decision of choosing the “best” moving average a real problem.
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