UNIT 3
Moving Averages
A moving average smooths recent prices; its lag is the cost of filtering noise.
LookbackFast reactsSlow smooths
A rolling estimate of price level and the relationship between lookbacks.
- Trend context
- Rule-based exits
- Whipsaws in ranges
- Late entries after fast moves
Optimizing lookbacks until the historical chart looks perfect.
Time-series momentum has historical support, but turnover and regime shifts materially affect results.
60-SECOND CHEAT SHEET
Remember this.
- 1Short = fast
- 2Long = smooth
- 3Crossovers need regime context