Ma analysis is not easy to master despite its many benefits. In the process, mistakes can result in inaccurate results with severe consequences. It is important to avoid these errors and recognize them in order to maximize the benefits of data-driven decisions. The majority of these mistakes result from omissions, or misinterpretations, which can be easily rectified by setting clearly defined goals and promoting accuracy over speed.
Another common mistake is to think that the variable has Check Out a normal distribution when it does not. This can lead to over- or under-fitting their models, which could result in the loss of the prediction intervals and confidence levels. Furthermore, it could cause leakage between the test and training set.
It is essential to select an MA method that fits your trading style. An SMA is the best option for markets that are trending, while an EMA will be more reactive. (It eliminates the lag in the SMA since it gives priority to the most recent data.) In addition, the parameters of the MA should be chosen carefully depending on whether you are seeking an immediate or long-term trend (the 200 EMA would suit a longer timeframe).
It is important to double-check the accuracy of your work prior to submitting it to be reviewed. This is especially true when working with large amounts of data, as mistakes can be more likely to occur. It is also possible to have your supervisor or a colleague review your work to help you discover any errors you may have missed.