It varies on stock and circumstance.
A 10 day moving average reacts faster on a chart in directional change than does a 50 day moving avrage because the 50 day average is calculated using 5 x the number of days.
The same is true when comparing a short time frame stochastic indicator like 5-3-3 which reacts faster than a longer time frame stochastic setting like 15-5-5.
In this next chart notice how the short time frame stochastic shows entry and exit points which are much closer to the cycle highs and lows. This gets you in nearer the bottom and out closer to the top. The drew back to short term stochastic is that if gives you a greater number of false signals but it is safer to use in a small cap stock IMO.
Reid
A 10 day moving average reacts faster on a chart in directional change than does a 50 day moving avrage because the 50 day average is calculated using 5 x the number of days.
The same is true when comparing a short time frame stochastic indicator like 5-3-3 which reacts faster than a longer time frame stochastic setting like 15-5-5.
In this next chart notice how the short time frame stochastic shows entry and exit points which are much closer to the cycle highs and lows. This gets you in nearer the bottom and out closer to the top. The drew back to short term stochastic is that if gives you a greater number of false signals but it is safer to use in a small cap stock IMO.
Reid
Reid
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