The Option Alpha Podcast
The Option Alpha Podcast
Kirk Du Plessis
227: What 20-Years of Moving Average Data Teaches Us About Stock Reversals & Momentum
33 minutes Posted Apr 19, 2023 at 4:00 am.
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Stocks have been described as a rubber band, and we often assume they will snap back and revert when prices become overextended.

So, we wanted to know: How likely is a security to continue or reverse its momentum above and below major moving averages in short, medium, and long-term timeframes? And does the security’s proximity to a moving average impact its performance?

We researched 20 years of data on 286 symbols, using short, mid, and long-term trends to analyze the ticker’s 30-day return relative to its simple moving averages.

I'll be honest, the results surprised me.

Click here to see the full research report.