Moving Average (Day or Month)

bobholzman

In this article, http://stockcharts.com/school/doku.php?&id=chart_school:trading_strategies:sector_rotation_roc&gclid=Cj0KEQiA_fy0BRCwiLaQ5-iFgpwBEiQA884sOV6UOSgmIbJGEE6fdnrK7b5wr5NGG2ZzkiREKWiYFGUaAjP_8P8HAQ

They discuss a 10-month SMA and show a chart with a MA(10) on the chart. Then a bit later they discuss a 12-month SMA and show a chart with a MA(12) on the chart. I'm learning so please clarify, I thought that an MA(10) would indicate a 10 Day Moving Average not a 10 Month Moving Average and an MA(12) would indicate a 12 Day Moving Average not a 12 Month Moving Average. Am I not understanding this correct? When I build a chart I can indicate an SMA and enter a number that is Days, correct? I would think a 10-month SMA would show on the chart as MA(200) for 200 Day (or 10 Months) Moving Average.

Please help with my understanding.

Thank you,
Bob

gord

Welcome to the forum.

What you have to look at is the time period of the chart. SMA(10) specifies 10 periods, (not days or weeks or months, just periods). The period of the chart determines the period of the SMA or any other indicator.

If its a monthly chart then the SMA(10) is based on 10 monthly periods.
If it is a weekly chart then SMA(10) is based on 10 weekly periods.
If it is a daily chart then SMA(10) is based on 10 daily periods.
If it is a 60min chart then SMA(10) is based on 10 60min periods.

etc.