50 Day Moving Average

Discussion in 'Technical Analysis' started by maxpower, Apr 20, 2008.

  1. maxpower


    I have a question about to 50 day SMA. In my charting software, and on others I've seen, the Moving Averages will vary based on the time length of the chart being viewed. I do not understand this as the 50 day MA should be calculated based on 50 days and should be the same on every chart. Does anyone have any insight on this? Thanks.
  2. mark1

    mark1 Guest

    I don't know if I understand your question.

    Think of the MA not in terms of days but in terms of periods, so if you plot a 50 periods MA on a daily chart, you have a MA calculated on 50 days/periods, now if you switch your chart to let's say a hourly chart,The MA is calculated on 50 hours/periods.

    So you obviously have 2 completely different MA, but they are both 50 MA.

    There are methods and piece of code to actually plot a 50 days MA on
    a hourly chart or whatever time frame you choose, it depends on the software you are using.
  3. maxpower


    Thanks Mark, I knew I was overlooking something simple such as that. So in other words, in order to view a 50 DAY moving average, I would need to be looking at a daily chart, not an hourly?
  4. Or just try to think about calling it the "50 moving average" It could be the 50 -1 minute moving average if you have a 1 minute chart up. It could be the 50 week moving average if you have a weekly chart up and so on and so forth.
  5. speaking of the 50 MA...why is it SO important?..whats the significance?
  6. None. It just tells you the direction of the trend based on that time frame.
  7. mark2


    50 Day MA is one of the mostly and widely watched MA. It is traditionally considered as a major dynamic support/resistance especially for traders.

    When you plot moving average on most of the software, you only select the period it represents. So when you picked 50SMA from the study menu, you are actually selected a 50-period MA. The output will be based on the time frame of the chart you are looking at. So, when you are looking for 50 DAY ma, you have to switch the frame of the chart to "daily" chart.
  8. Wood474


    Not true at all, it is highly significant. The most widely watched and used period on all timeframes.
  9. I was going to post a chart but then I decided not to.
  10. ==================
    50 % off sale, is important also.

    And speaking of exactly, 50ema differs from 50wma .....;
    and 50 ema can differ with various chart companys [Esignal usually a bit different from prophet charts......]:cool:

    William O Neill [IBD] & his numerous fund clients watch it & 200dma;
    plus stock personalities [bear or bull trend] can change surprisingly around 50 day moving average:p

    Like it with discretion, rather than a strict rigid signal.
    #10     May 27, 2008