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A Bit of a Correction: Oil

As detailed in my earlier post, here is the chart for oil. Again, you can see that we are still well above the 13-day moving average. Our risk management technique discussed in the Gold post applies here as well. Please review it for further details.

So why the 13-day moving average? From my experience, the 13-day and the 34-day moving average represent the best indicator for stock price movements and changes in sentiment. I also like the exponential moving average since it gives a heavier emphasis to more recent data than older date whereas the simple moving average treats all data equally.