How to interpret moving average crossover
How to interpret bollinger bands
Q1 Import S&P 500 Index.
Q2 Filter for the period between 2018-01-01 and 2018-11-28. Do this for both plots: the moving average crossover and the Bollinger Bands.
Q3 The stock market plummeted since its October high. If you followed the moving average crossover blindly, what should you have done since the last October? Buy or sell?
Q4 If you followed the Bollinger Bands instead, what should you have done since the last October? Buy or sell?
Q5 How effective is the Bollinger Bands? For example, would you have made profits by following the Bollinger Bands since the beginning of 2018? Explain.
Q6 Which of the two appears to be more appropriate for short-term?
Q7 Construct the Bollinger Band plot of the Nasdaq Composite Index for the same period. Do this by copying and pasting the necessary code from the above. Would you have made profits by following the BB since the beginning of 2018?
Q8 (Continued from Q7) What would you consider changing to make it more effective?