I've been trading for almost 10 years, and I had never heard of an 18 day moving average until I subscribed to your service. Is it a "trader's secret" or something? It just seems kind of odd when compared to the 10, 50, and 200. Do you have any information about it? (June 16, 2001)
We developed our system of looking at stock movements after reading and trying everything we could get our hands on and then holding onto what worked. We found that the 18 day exponential moving average is often a much more accurate indicator of shorter term support for stocks moving out of solid patterns than other moving averages. It is quite simply a case of trying many and focusing on the one that worked for us. These change over time depending upon market volatility and changing attitudes. That is why we always look at other MVA's to see if there is any change. Some stocks will adhere to the 20 day MVA more than the 18 day, but we find them to be the minority at this stage.
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