Email of the day
“A question re the chart library: I am interested in viewing the annual average value of items such as gold or WTI to get a better sense of long term trends. Can I view such a chart from the chart library?
“If not, since the underlying data seems to be on the current charts, is this something you would consider adding to a future update? Thanks”
Eoin Treacy's view Thank you for this question
which others may also have an interest in. I'm afraid we do not have average
annual prices for any of the instruments in the Chart Library. However an average
annual price would only give you a single data point for the year and is calculated
using a rather arbitrary January to December time scale. Perhaps a moving average
would be useful since it has the advantage of rolling with each new data point
and smoothes out errata.
While
we typically use a 200-day MA because it is the most common representation of
a year's trading history, some may argue that 250 days better reflects the number
of days the markets are actually open
A
semi-log scale may also be worth considering when examining long-term data because
of the additional perspective it lends to historic market activity. For example
here is a semi-log line chart of gold
with a 250-day MA.