Closing in on the completion of the series on moving averages, I have overlaid the EMAs using Lucas Numbers to determine the number of periods to measure for daily, weekly, and monthly closes.
2 black 1 orange 3 red 4 pink 7 purple 11 dark blue 18 light blue 29 light green 47 black 76 orange 123 red 199 pink 322 purple 521 dark blue 843 light blue 1364 light green 2207 black 3571 orange
By now I have presented a sufficient number of moving averages to compare. Hopefully perspective has been given to the shortcomings of rigidness. I do not intend to push the importance of one over another. The purpose of these posts on moving averages is to clarify the immanence of short and long term rates of change. Measuring previous rates of change can only aid in the identification of future changes in rates of change. Future posts will show my preferred metrics.
How else can we play with this data? Over time, I will explore the deviations of means both from each other and from the current price. We will also consider how significant moving average crossings are. We'll note moving averages as being more significant when they are parallel or align with channels since different participants looking at different metrics arrive at the same conclusion, the rate of change.