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August 15 2012

Commentary by Eoin Treacy

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on annual average prices:
“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.

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