by Adz3r0 on August 24th, 2009

Adz3r0

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Yahoo!'s 20 day moving average has fallen below it's 50 day moving average, yet it appears to be gathering momentum. When going between the MACD and the moving average, which holds more weight in determining a stock's positive outcome?

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  • by puzzled on August 26th, 2009

    puzzled

    Sounds like hocus pocus to me.
    But if the short term moving average has fallen below the long term moving average then the stock is suffering.
    Maybe general market conditions, maybe the stock is undervalued, maybe its going bust, maybe a buying opportunity, maybe an opportunity to lose your shirt.

    Who knows? takes a lot more research than the moving average or MACD. If it didn't the statistical share tippers wouldn't need to work.

    I will venture out a little and that is to say that statistics work only on the broad stage. You may have statistically a less than 1% chance of being shot in the street but to some poor devil thats a 100% certainty.
    So you could say you have a 99.999% chance of walking down one street on one occasion and surviving. But again some day some poor devil will have no chance.
    So you need to spread your risk if your working with statistics.

    After all thats what statistics are, broad measures of a population.

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