All language subtitles for 7. Which Moving Average Should You Use

So many people in technical analysis love using moving averages, and they're very, very commonly used,

but there's a lot of big debates around them.

And one of the biggest debates around in technical analysis is which one do you use?

And they really kind of come around to big aspects of it, which is the aspects you need to choose when

you're choosing to put a moving average on the chart or on the security you're looking to evaluate.

And so you need to think about the type of moving average you want to use, simple or weighted or exponential

or adapt to whatever it might be.

And then the length of time, the period of time, those are the two things that work together that

you get to choose from.

So let's talk about that a little bit more so we think about it.

You know what's most sensitive to recent price moves?

If we were to kind of grade that simple moving average or estimate would be the least sensitive and

then waiting and waiting on average and then exponential and then something like like a koffman moving

average would be more sensitive to recent price moves.

So that's a way you can look at it.

For one thing, how much you want to put most emphasis around recent price moves.

The other would be the time frame.

You know, how long of a time frame do you choose?

The shorter the time frame for your moving average, it's going to respond quicker to new conditions.

Right.

But in a longer time frame will reduce errors, basically reducing whipsaws.

Right.

You know, basically going in and out.

So if you want to get a response, you know, quickly and is very sensitive to prices, that you might

use an Emmy with a short time frame of something that would be less sensitive to more recent prices.

And over a longer period time, they might use a simple moving average with like a 20 or 50 or even

a 200 day time frame.

And they all kind of work and they all work in their own ways.

But that's the big thing you understand is sensitive to recent prices in choosing the moving average

and the time frame, as far as, you know, how quickly they're responding, shorter time frames, more

responsive as far as I would go.