TL;DR
Moving averages are an essential technical indicator used to analyze price trends of stocks in BIST. For instance, when the 50-day moving average crosses above the 200-day moving average, it is generally interpreted as a buy signal.
7 min readA practical guide to stock screening with moving averages on BIST. An important part of the stock screening process.
How to Apply
Use Borsafolio's stock screener to perform this type of screening. Narrow results using momentum, value, and quality factors.
Key Considerations
Screening results are not investment decisions. Evaluate alongside sector analysis and deepen with fundamental analysis. Measure risk-adjusted performance with the Sharpe ratio.
Screen BIST stocks with 13 different filters.
Open Screener →Related articles: Stock Screening Guide, Sector Analysis, Sharpe Ratio.
Frequently Asked Questions
What is a moving average?
A moving average is a technical indicator that averages prices over a specific time period to identify changing price trends. There are two main types: simple moving average (SMA) and exponential moving average (EMA).
How is a moving average calculated?
To calculate the simple moving average (SMA), the total of stock prices over a specific period (e.g., 50 days) is taken and divided by the number of days. For instance, if the total price over the last 50 days is 5000 TL, the SMA would be 5000 TL / 50 = 100 TL.
How does the stock screening process work?
The stock screening process begins with investors filtering stocks based on specific criteria. Financial metrics such as market value, dividend yield, and price-to-earnings ratio are used to analyze stocks.
What are the stock selection criteria?
Stock selection criteria help investors decide which stocks to buy. For example, investors may target a stock in the BIST 100 index with at least a 5% dividend yield and a price-to-earnings ratio below 15.
What are short-term strategies?
Short-term strategies allow investors to use moving averages to identify quick trading opportunities. For example, if the 5-day moving average crosses above the 20-day moving average, it may be interpreted as a buy signal.
This content does not constitute investment advice. Past performance is not a guarantee of future results. Make your investment decisions based on your own risk profile.
