math question

Discussion in 'Trading' started by Satan, Nov 3, 2001.

  1. Satan


    i'm not thinking too good at the moment!

    say you have a 5 day simple moving average:


    i'm looking to determine at what price today's 5sma will be greater than yesterday's.

    i'll give an example:

    say yesterday a stock had a 5sma of 25.8

    ((25+27+24+25+28)/5) = 25.8

    for today's 5sma to be greater than yesterday, then

    ((27+24+25+28+x)/5) > 25.8

    can someone show the steps to finish this so i can figure out at what price x makes this equation true? it's been a while since i've done this stuff!

  2. X must be greater than the price you have dropped, i.e. greater than 25
  3. Satan


    lol thank you! it seems so obvious now... thanks!
  4. LMeyers


    Mathematically speaking,

    (27+24+25+28+x) /5 > 25.8

    (27+24+25+28+x) > (25.8)(5)

    104+x > 129

    x > (129 - 104)

    x > 25