Stock Market Data Analysis Using Moving Averages

by Luis Dominguez

Submitted : Spring 2015

Using the Simple Moving Average and Exponential Moving Average  of Microsoft’s stock, it was possible to determine how these two indicators are related to the changes in trends in the stock being analyzed and how they can be used to prevent losses caused by erroneously predicted stock market behaviors. First, a linear regression method was used to show how linear characterizations are not useful for stock predictions. Then a 200-day SMA was developed to show how the intersections between the Average and the stock’s graph delimit certain trends. Lastly, a 10-day SMA was used and compared to a 30-day EMA to show the relationship between the two, as well as the relationship that the two share with the trend of the stock itself.

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