The Importance of Moving Averages

markets on these longer-term moving averages can get stretchy to the upside lose their momentum and tend to snap back or not continue at the same pace so here's how it worked right. If you were 5% above the 50-day moving average the next 30-day return on average was 1.39 percent that kind of sets the baseline if you were 10 percentabove the 50- day moving average thenext 30-day returned was 1.5 percent but now we start to see that hey we get too far above these longer- term moving averages we're actually likely not to continue the momentum, he says. The further I am above the moving average the more momentum I'm building like