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Sean,
Interesting point. This reminds me of the arguments for and against plotting
a moving average where we commonly do so now. If considered logically, and
from the mathematical viewpoint of what the average represents, then the
average should really be plotted at the point on the chart which represents
the mid point of the average, and not the last point, as common practice
today, and since the beginning of charting.
So for a 21 day simple MA you would plot it at the middle pont of the
average, that is today minus 11 days.
It of course raises more interresting questions as to where to plot weighted
averages, or exponentials. Presumably at the point representing the centre
of gravity of the data, not the mid point. Not very mainstream, and not
much help.
So for weekly data, a more representative figure might be the close on
Wednesday, or even an average of the weekly closes. However, usually a
weekly figure is used where less information is needed, not more, hence the
close of the week.
Simon
-----Original Message-----
From: Sean Taylor <cloudnine@xxxxxxxxxxxx>
To: Metastock List <metastock@xxxxxxxxxxxxx>
Date: 21 August 2001 01:35
Subject: Weekly/Monthly data
>Is anybody out there using weekly (or even monthly data)?
>
>It occurred to me that if using weekly data for a system, is it truely a
>reflection of the weeks activity to go off the weeks close? Might it be
>better to perform some sort of average on the weeks data to better reflect
>the weeks activity? i.e. the average close for the week.
>Metastock takes the Friday close and uses this for weekly data.
>
>I raise this because I've come up with a system that works well on the
>Russell 2000 weekly but not daily.
>
>It just seems that the data I'm basing the test off could vary as easily as
>an individual day.
>
>Thoughts?
>
>Thanks,
>Sean
>
>
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