Moving Averages /Buy & Sell Trigger points


#1

Using standard pro investment modelling Freetrade could do easily recommend the buy in and sell markers of moving averages (markers where trend graphs cross). These are normally based on short, medium and long term analysis graph models. Standard amongst investment pros but useful to novice investors, which is after all the market that Freetrade is trying to mobilise.


(Emma) #2

As a novice I’m not sure what pro investment modelling is, can you explain?


#3

If you google ‘ moving averages ‘ you’ll be as informed as I am. I’m also a novice.


#4

If you could overlay short, medium and long term moving averages over a stocks’ performance graph with buy (bull) and sell (bear) turning points your app would be a game-changer


(Emma) #5

Ok so why are you recommending it as a long term investment strategy? From what I understand they are mainly used for short term investing and doesn’t actually work. Throwing more tools in for no benefit seems pointless as it will either totally confuse new investors or falsely make them think it will guarantee good returns


(Vladislav Kozub) #6

Moving averages are not quite substantial if looked at in isolation, without the rest of technical analysis they form. In fact, they can even be misleading alone. After all, you cannot suggest if a stock is good or not based on its average value :slight_smile:

Speaking of Buy/Sell trigger points, which I assume are limit orders, it has been suggested before (unless you meant the trigger points based on the MA values). Considering how popular this idea, I would not be surprised if it was implemented in 2019, hence you may want to promote it too :wink:


#7

Buying or selling stock is at your own risk. Everyone knows that but optional tools/filters which can be selected with warnings if that fact would be game changing as they would help people invest at least as well as most traders (who let’s remember actually know nothing and cannot guess better than you or I) but do have experience, algorithms etc to draw on to make decisions. Did you know that simply investing in the S&P 500 has outperformed 99% of all the best performing hedge funds long term?


(Dave Smith) #8

Technical analysis isn’t only for short term trading, you can use it on longer timescales to try to choose a good buy in point. Obviously there’s no guarantee, but it’s a potentially useful tool

Also Just because Freetrade is aimed at investors rather than traders doesn’t mean everyone has to buy and hold everything forever. at some point you are going to want to take some profits :slight_smile: