Distance Between Fast and Slow Price SMAs and Stock Returns
December 27, 2023 - Technical Trading
Does degree of difference between fast and slow simple moving averages (SMA) for a stock price series predict future stock return? In the December 2023 revision of their paper entitled “Moving Average Distance as a Predictor of Equity Returns”, Doron Avramov, Guy Kaplanski and Avanidhar Subrahmanyam test distance between a 21-day SMA (SMA21) and 200-day… Keep Reading