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Just an extra word of advice, when using moving averages make sure that your stock is trending, not ranging. If your stock is not trending (i.e. it is oscillating within a rough range) then moving averages won't be very useful and trading based on them will just cost you a fortune in brokerage.
Halebop:
I did some very naive backtesting and here are some results:
NZX50 30/4/04 to 06/03/21:
Buy and hold over this time: 29.3% increase.
Buy at lowest point and sell at highest: 79.2% increase.
Buy whenever price goes above 31 SMA and sell when price goes below: 72.9% increase - brokerage on 62 trades = 48.1% on brokerage of 0.4%.
Buy/Sell whenever 7 EMA crosses 82 EMA: 60.8% increase - brokerage on 13 trades = 55.6% on brokerage of 0.4%.
Better results when using a trend-identifier.
Results are indicative only, I'm not suggesting to use them or anything, just pointing out that MAs could potentially be used profitably.
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