1-200 Moving Average System
IT 위키
1-200 Moving Average System is a trend-following trading strategy that uses the relationship between the 1-day and 200-day moving averages to generate buy and sell signals. This system is widely used in technical analysis to capture long-term trends and avoid false signals.
1 Concept[편집 | 원본 편집]
The strategy relies on:
- 1-day moving average (1MA) – Represents the most recent closing price.
- 200-day moving average (200MA) – Represents the long-term trend.
Traders use this system to identify bullish and bearish market conditions based on the position of the 1-day moving average relative to the 200-day moving average.
2 Trading Rules[편집 | 원본 편집]
- Buy Signal – When the price (1MA) crosses above the 200MA, indicating an uptrend (Golden Cross).
- Sell Signal – When the price (1MA) crosses below the 200MA, indicating a downtrend (Death Cross).
3 Example[편집 | 원본 편집]
A simple implementation of the 1-200 moving average system in Python:
import pandas as pd
import matplotlib.pyplot as plt
# Load historical stock data
df = pd.read_csv("stock_prices.csv")
# Compute moving averages
df["1MA"] = df["Close"]
df["200MA"] = df["Close"].rolling(window=200).mean()
# Generate buy and sell signals
df["Signal"] = (df["1MA"] > df["200MA"]).astype(int)
# Plot the data
plt.plot(df["Close"], label="Stock Price")
plt.plot(df["200MA"], label="200-Day Moving Average", linestyle="dashed")
plt.legend()
plt.show()
4 Advantages[편집 | 원본 편집]
- Simple to Implement
- Easy to calculate and interpret.
- Effective for Trend Following
- Helps capture long-term trends.
- Reduces Market Noise
- Filters out short-term fluctuations.
5 Limitations[편집 | 원본 편집]
- Lagging Indicator
- Signals appear after trends have started.
- Whipsaw Risk
- Frequent false signals in sideways markets.
- Not Suitable for Short-Term Trading
- Designed for long-term trend identification.
6 Applications[편집 | 원본 편집]
- Stock Trading**Commonly used in equity markets.
- Forex Trading
- Helps traders identify major currency trends.
- Cryptocurrency
- Used to navigate volatile crypto markets.
