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Hi Shelly
>At the risk of appearing a few bricks short of a load, I also want to
confirm that, for example, a 5 week moving average is equivalent to a
50 day moving average. Specifically, is a day period ma always times
five to equal a week period ma?
Did you mean a 25 day moving average?
It's a common misconception that a 5 week MA is the same as a 25 day MA (or 10 week is equal to 50 days etc.). This is not the case. If you want to use a 25 day MA as a proxy for a 5 week MA then that is OK, but do understand that it is only an approximation, not the real thing. There are many "weekly" formulas for daily charts that are just approximations. Some are nearer to the real thing than others, but some don't even come close.
The real thing won't necessarily make you any more money but it does accurately represent what you would see on a weekly chart if you switched to weekly periodicity.
Regards
Roy
www.metastocktips.co.nz
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