I wrote a article about the different seasons using the MACD (moving average convergence divergence) indicator here. In it, I talked about how the four seasons can be characterised objectively by looking at the slope and the positivity/negativity of the histogram. Let’s see if we can replicate that into another indicator – the moving average.

There are a few kinds of moving average, and usually I’m using exponential moving average (EMA) because they are more sensitive to the latest price movement. Moving average should be drawn in a pair, one shorter and one longer term with the longer one being twice that of the shorter one. That means if you use 10 days MA, you should include 20 days MA as the longer term line. It doesn’t really matter which days you’re using, it could be 50/100, or 100/200, but for the purpose of this article, I’m using my 13/26 …