January 09, 2013 at 17:54 PM EST
Learn To Invest: Align Technology's Law Of Averages
Few tools in the trader's workshop see as much active duty as the moving average lines. These useful markers are charted over a stock's price bars and come in many varieties. Most commonly used: the 10-week and the 50-day lines. The two follow similar trajectories: the former on a weekly, the latter on a daily chart. The 10-week average is the sum of a stock's weekly closing prices over the prior 10 weeks, divided by 10. A 50-day line sums up the
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