Moving Average Forecasting Models

Obtain the daily price data over the past five years for three different stocks. Data can be obtained from the Internet by using the following keywords: stock price data, return data, company data, and stock returns.

• Create trend-moving averages with the following values form: 10, 100, and 200. Graph the data with Excel.
• Create centered-moving averages with the following values form: 10, 100, and 200. Graph the data with Excel.
• How do the moving averages for the same values of m compare between a trend-moving average and a centered-moving average?
• Explain how these moving averages can assist a stock analyst in determining the stocks’ price direction. Provide a detailed explanation with justifications.