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227: What 20-Years of Moving Average Data Teaches Us About Stock Reversals & Momentum

The Option Alpha Podcast

CHAPTER

The 5 Day Simple Moving Average and the Average Return

The best return over the next 30 days is when a ticker is more than 20 percent below its 5 day moving average. The snapback or the possibility of snapping back in the opposite direction was really big right and now some of those didn't work out right it's not that all of them worked out that was the average so you definitely saw some that continue lower some that continue much higher but essentially the average was 36.72 percent if you can continue going across the chart for drops of more than 15 percent below the five day moving average the average return was 22.47 percent in the next 30 Days. If these securities on average were five percent above their five day movingAverage their next 30

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