What The 200 Day Moving Average Does & Does Not Tell You

Trend-following is a strategy that got a lot of attention following the financial crisis. It’s something my views have evolved on over the years. There are a lot of misconceptions out there about what the typical trend-following signals actually mean. There’s much more nuance involved than simply looking at the moving average of the price of a stock or index. If you would like to use this type of strategy you …