A 10-day moving average WOULD average out the closing prices for the first 10 days as the first data point. The next data point WOULD drop the earliest price, add the price on day 11 and take the average, and so on as shown below.

Read more: Moving Average (MA) https://www.investopedia.com/terms/m/movingaverage.asp#ixzz59bm4RYnx

  • 2
    nothing seems wrong with the sentences. – Archie Azares Mar 13 '18 at 6:47
  • 1
    It's probably the apododis of a remote conditional construction and interpreted as "If P then Q would... – BillJ Mar 13 '18 at 8:28
  • @BillJ is correct. 'If P' is 'If one decided to adopt the model which is based on a 10-day moving average, [the effect would be to average out ...]'. – Edwin Ashworth Mar 13 '18 at 8:40

They are being safe in their expression. Without looking at the source I can tell there was probably was given some example before this text.

What they are saying is "in this case with a 10-day moving average the first 10 closing prices will...".

So, there is some kind of condition for the first 10 closing prices to average out to the first data point. That can be the 10-day moving average as opposed to a 5-day moving average. Or for this example the 10-day MA averages out to the first data point, which means there are other examples in which it doesn't.

| improve this answer | |
  • I agree with your assessment of the text. The writer probably gave some data as an example and the wrote one or more definitions in the conditional tense, since the reader could in theory “choose” which one to apply to their own data. It’s common for people writing a lot of definitions and examples to stay in the conditional style throughout, even if it isn’t strictly required in every case. – Global Charm Mar 13 '18 at 8:35

Good question.

The word/phrase ahead of "would" is actually a noun/noun phrase, and the word/phrase that comes after "would" is a verb.

Usage examples:

I (pronoun) would go ahead (verb phrase) and do it.

The old car (noun) would tilt over (verb phrase) onto two wheels ever so slightly whenever I tapped the brakes.

I predicted that the market prices (noun phrase) would drop (verb) if the company declared bankrupt.

| improve this answer | |
  • I would go ahead or I will go ahead? Please explain sir – user2481797 Mar 13 '18 at 7:52
  • this answer looks like it did not answer the question "why". – Archie Azares Mar 13 '18 at 9:08

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.