Multiple Moving Average Directional Comparison
Moving averages provide “perspective’ as to the general direction of a market. Yes … they are slow moving but they can keep you grounded and focused on the correct side of a bull or bear market. The chart below summarizes the directional phase for three separate simple moving averages for a variety of futures markets. Markets that have rising 50, 150 and 200 day moving averages appear in tan (pointed right) while those with falling moving averages appear in grey (pointed left). Market with mixed moving averages appear in black with a biased to the bull side (right) or bear side (left). Note: the scale has no meaning … the direction provides the only reference. This simple moving average comparison is not to be used for buy or sell signals but rather as a general over view of current directional phase.
Combined 50 / 150 / 200 Day Moving Average Directional Comparison:
Note: the scale of the chart has no meaning … the bar direction (right or left) provides the only reference. This simple moving average (SMA) comparison is not to be used for buy or sell signals but rather as a general overview of current directional phase.