Import stock prices

Moving Average Crossover

Bollinger Bands

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?

since you can not see past the chart from today you would think that a bearish crossover. i would sell if i had anything in the SPY.

Q4 If you followed the Bollinger Bands instead, what should you have done since the last October? Buy or sell?

I would say since last october i would buy some since the stock prices could be concidered over sold.

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.

i would say that if you bought stocks in the beginning of jan and then held them till they hit the upper band in may then buy some more in july and sold them in october you would make some decent money. but if you held them after the beginning of october you would potentially lose money

Q6 Which of the two appears to be more appropriate for short-term?

i would say that Bollinger bands would be more appropriate for short-term. since they give you more specific buying and selling points

Q7 Construct the Bollinger Band plot of the Nasdaw 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?

If you where to when the BB start on the graph and bought in febuary and then sold them in beginning and of april and bought again a few weeks later held them till july and sold them then bought more or held the original amount and sold them in october you would make money but if you held it till october and after since the crash of the marker you would loose money.

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Q8 (Continued from Q7) What would you consider changing to make it more effective?

i would change the SMA from 2 to 3 changinging the standard deviation. this would make less volitile since it hits the upper and lower bands less often giving you in my opinion a better reading for the long term.