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The Moving Average That Changed How I Think About Habits

The Moving Average That Changed How I Think About Habits

via Dev.to JavaScriptEastkap

The Moving Average That Changed How I Think About Habits Why the 7-day trend line matters more than today's score. I've been building HabitStock -- a habit tracker that shows your habits as stock price charts. And one pattern keeps surprising me. It's not the daily score that predicts long-term success. It's the 7-day moving average . Why Traders Use Moving Averages In financial markets, the daily price is noise. It bounces up and down based on news, sentiment, temporary events. What professional traders actually watch is the moving average -- the smoothed trend line that filters out the noise and shows the actual direction. A stock trading below its 50-day MA is in a downtrend. A stock trading above its 200-day MA is in a long-term bull run. The daily candle is just one data point. The trend is the signal. Habits Work the Same Way When you miss a habit, you don't see a crashed price -- you see a dip below your 7-day moving average. When you're on a bad week, the MA trends down. When y

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