Moving Average Analysis of ACAS

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From the Weekend Report 7/9/2010: The MACD Cycle is in phase one here, with ACAS 26.00 % above the 200 bar SMA, increasing the distance over the week.

ACAS: Recent Averages with Candlestick Chart.

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This page looks at the predictive abilities of different methods of averaging applied to ACAS stock prices. Techniques available include moving weighted or exponential averages of various periods and the family of MACD (Moving Average Convergence Divergence) indicators.

Unfortunately, some of the most popular indicators of this type can prove to be the worst forcasting indicators. The effectiveness of these methods as applied to ACAS stock price trend evaluation is tested on the next page.

Green is the 20 bar moving average, while the 200 session average is red. Often the simple unweighted moving averages seen in this plot will give a more accurate indicator, with fewer false signals than some of the supposedly more sophisticated techniques that we test below. Commonly, speculators will use exponential averages or weighting techniques to emphasize the most recent data. But past a certain point, such front weighting can dramatically increase false signals. Norman Fosback pointed out that a legitimate signal should be one that is clearly evident through a variety of averaging methods.

Moving Average Convergence of American Capital Ltd.

Companies In the News

Friday, July 30, 2010: We have news on National Semiconductor Corporation, ticker symbol NSM. A significant moving average event has happened. Also, there are breaking events concerning Tenet Healthcare Corporation and Janus Capital Group Inc..

From the News Archive: (7/30/2010 ) A favorable event happened at Akamai Technologies, Inc.. Meanwhile, bad news came from Eastman Chemical Company, Motorola, and Automatic Data Processing.

MACD analysis is dangerously suited for overtuning, since it may use any of an infinite number of averaging methods and coefficients. In addition to crossover signals based on moving averages, many analysts add a trigger line which is based on some average of the first two averages. Here we depict the results of 12 and 26 session Exponential Moving Averages. The exponential coefficient used here is .18. There is nothing magic about these parameters, but these are frequently seen.

Float the cursor for a longer term chart.

Moving Average Convergence Divergence, or MACD, produces buy or sell signal that are color tinted here.

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Moving Avg. 20/200 Divergence	Signaled Appreciation minus non-signaled Appreciation	Annualized %
Buy Signals - 8 instances
Future30SesAvgClose	3.62 % minus 1.33 % = 2.29 %	19.43 %
Future5SesAvgClose	-0.61 % minus 0.26 % = -0.87 %	-43.96 %
Future2SesAvgClose	-0.19 % minus 0.12 % = -0.31 %	-39.22 %
Sell Signals - 8 instances
Future30SesAvgClose	1.09 % minus 1.33 % = -0.24 %	-2.02 %
Future5SesAvgClose	0.81 % minus 0.26 % = 0.55 %	27.85 %
Future2SesAvgClose	0.45 % minus 0.12 % = 0.33 %	42.21 %
	.
Moving Avg. 5/20 Divergence	Signaled Appreciation minus non-signaled Appreciation	Annualized %
Buy Signals - 82 instances
Future30SesAvgClose	0.10 % minus 1.33 % = -1.23 %	-10.39 %
Future5SesAvgClose	0.09 % minus 0.26 % = -0.17 %	-8.69 %
Future2SesAvgClose	-0.16 % minus 0.12 % = -0.28 %	-36.09 %
Sell Signals - 81 instances
Future30SesAvgClose	1.50 % minus 1.33 % = 0.17 %	1.44 %
Future5SesAvgClose	1.63 % minus 0.26 % = 1.37 %	69.77 %
Future2SesAvgClose	1.28 % minus 0.12 % = 1.16 %	147.50 %
	.
Moving Avg. 5/200 Divergence	Signaled Appreciation minus non-signaled Appreciation	Annualized %
Buy Signals - 14 instances
Future30SesAvgClose	3.79 % minus 1.33 % = 2.46 %	20.81 %
Future5SesAvgClose	1.32 % minus 0.26 % = 1.07 %	54.24 %
Future2SesAvgClose	0.35 % minus 0.12 % = 0.23 %	28.79 %
Sell Signals - 14 instances
Future30SesAvgClose	0.25 % minus 1.33 % = -1.08 %	-9.17 %
Future5SesAvgClose	1.07 % minus 0.26 % = 0.81 %	41.07 %
Future2SesAvgClose	1.11 % minus 0.12 % = 0.99 %	125.30 %
	.
MACD 12/26 Divergence	Signaled Appreciation minus non-signaled Appreciation	Annualized %
Buy Signals - 292 instances
Future30SesAvgClose	0.08 % minus 1.33 % = -1.25 %	-10.58 %
Future5SesAvgClose	-0.38 % minus 0.26 % = -0.64 %	-32.32 %
Future2SesAvgClose	-0.28 % minus 0.12 % = -0.40 %	-50.80 %
Sell Signals - 291 instances
Future30SesAvgClose	0.26 % minus 1.33 % = -1.07 %	-9.04 %
Future5SesAvgClose	-0.04 % minus 0.26 % = -0.30 %	-15.03 %
Future2SesAvgClose	-0.17 % minus 0.12 % = -0.29 %	-36.40 %
	.
MACD 12/26 Signal	Signaled Appreciation minus non-signaled Appreciation	Annualized %
Buy Signals - 425 instances
Future30SesAvgClose	1.80 % minus 1.33 % = 0.47 %	3.99 %
Future5SesAvgClose	0.58 % minus 0.26 % = 0.32 %	16.47 %
Future2SesAvgClose	0.32 % minus 0.12 % = 0.20 %	25.61 %
Sell Signals - 424 instances
Future30SesAvgClose	1.57 % minus 1.33 % = 0.24 %	2.03 %
Future5SesAvgClose	0.34 % minus 0.26 % = 0.08 %	4.16 %
Future2SesAvgClose	0.30 % minus 0.12 % = 0.18 %	22.24 %
	.
Calibrated M by Q Half Cycle Moving Avg.	Signaled Appreciation minus non-signaled Appreciation	Annualized %
Buy Signals - 167 instances
Future30SesAvgClose	-0.44 % minus 1.33 % = -1.77 %	-14.96 %
Future5SesAvgClose	0.67 % minus 0.26 % = 0.41 %	20.96 %
Future2SesAvgClose	0.82 % minus 0.12 % = 0.70 %	89.34 %
Sell Signals - 167 instances
Future30SesAvgClose	-0.81 % minus 1.33 % = -2.14 %	-18.08 %
Future5SesAvgClose	-0.02 % minus 0.26 % = -0.28 %	-14.03 %
Future2SesAvgClose	0.04 % minus 0.12 % = -0.09 %	-10.87 %
	.
Calibrated M by Q Full Cycle Moving Avg.	Signaled Appreciation minus non-signaled Appreciation	Annualized %
Buy Signals - 122 instances
Future30SesAvgClose	-1.71 % minus 1.33 % = -3.04 %	-25.72 %
Future5SesAvgClose	-0.76 % minus 0.26 % = -1.02 %	-51.69 %
Future2SesAvgClose	-0.39 % minus 0.12 % = -0.51 %	-64.33 %
Sell Signals - 123 instances
Future30SesAvgClose	-0.70 % minus 1.33 % = -2.02 %	-17.14 %
Future5SesAvgClose	0.45 % minus 0.26 % = 0.19 %	9.77 %
Future2SesAvgClose	0.33 % minus 0.12 % = 0.21 %	26.54 %
	.
Projected Crossing of SMA 20/200.	Signaled Appreciation minus non-signaled Appreciation	Annualized %
Buy Signals - 9 instances
Future30SesAvgClose	3.16 % minus 1.33 % = 1.83 %	15.52 %
Future5SesAvgClose	-1.12 % minus 0.26 % = -1.38 %	-69.88 %
Future2SesAvgClose	-0.78 % minus 0.12 % = -0.90 %	-114.46 %
Sell Signals - 10 instances
Future30SesAvgClose	-0.66 % minus 1.33 % = -1.99 %	-16.88 %
Future5SesAvgClose	-1.02 % minus 0.26 % = -1.28 %	-64.96 %
Future2SesAvgClose	-0.20 % minus 0.12 % = -0.32 %	-40.66 %
	.
Projected Crossing of SMA 5/20.	Signaled Appreciation minus non-signaled Appreciation	Annualized %
Buy Signals - 103 instances
Future30SesAvgClose	1.24 % minus 1.33 % = -0.09 %	-0.80 %
Future5SesAvgClose	0.10 % minus 0.26 % = -0.16 %	-7.98 %
Future2SesAvgClose	0.02 % minus 0.12 % = -0.10 %	-12.92 %
Sell Signals - 86 instances
Future30SesAvgClose	2.10 % minus 1.33 % = 0.77 %	6.56 %
Future5SesAvgClose	0.70 % minus 0.26 % = 0.44 %	22.59 %
Future2SesAvgClose	0.65 % minus 0.12 % = 0.52 %	66.55 %
	.

The best buy signal for 30 future sessions was 2.46 % from the Moving Avg. 5/200 Divergence,and the best sell signal for was -2.14 % from the Calibrated M by Q Half Cycle Moving Avg..

For 5 future sessions the best buy signal was 1.07 % from the Moving Avg. 5/200 Divergence,and the best sell signal was -1.28 % from the Projected Crossing of SMA 20/200..

The best buy signal for 2 future sessions was 0.70 % from the Calibrated M by Q Half Cycle Moving Avg.,and the best sell signal was -0.32 % from the Projected Crossing of SMA 20/200..

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Moving Average Convergence for American Capital Ltd. Stock Prices - ACAS