Invest and Trade Profitably with Jon Johnson

I’ve noticed this month you have referred to the 20 day moving average a lot and have not referred to the 18 day moving average that much. Are you replacing the 18 to the 20 or are there certain market conditions now that lead you to look more at the 20 day moving average?

August 30, 2000

No, we are not replacing the 18 day moving average with the 20, but some stocks tend to use that level as support more often than the other averages. Moreover, at certain times, even stocks that normally use the 18 day moving average (the majority of stocks) will start using the 20 day. When we see it, we will report it that way. We still find the 18 day moving average as a better read than the 20 day moving average in most instances.

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