Timeline for Why are weekends ignored when calculating moving averages?
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| Aug 26, 2021 at 14:09 | comment | added | TooTea | @nanoman Sure, but (without having any actual data to back it) I would tend to assume that the rate of interesting things happening is lower on weekends than on business days. Say, companies rarely publish financial reports on weekends (or outside business hours, for that matter). Also, I'm not convinced the Monday morning price changes end up being exactly the same as if the market was also open on Saturday and Sunday. Sure, major events will be priced in similarly, but all the random walk around that will just be skipped. | |
| Aug 26, 2021 at 13:50 | comment | added | nanoman | "Why should the average price change between Friday and Monday be any different from the price change for any other two consecutive trading days?" Because it reflects 72 hours worth of events rather than 24 hours? Major companies don't stop operating and world news doesn't stop breaking over the weekend. | |
| Aug 26, 2021 at 11:32 | history | answered | TooTea | CC BY-SA 4.0 |