Despite its many advantages, analysis can be difficult to master. Mistakes often arise in the process, resulting in incorrect results which can have devastating consequences. Recognizing these errors and avoiding them is crucial to unlock the full potential of data-driven decision making. The majority of these errors are due to omissions or misinterpretations which can be easily corrected by setting clear objectives and promoting accuracy over speed.
Another common mistake is to believe that the variable has an average distribution when it does not. This can result in models being either overor under-fitted, compromising confidence levels and prediction intervals. It could also cause leakage between the training and test set.
When selecting the MA method, it is essential to select one that meets the requirements of your trading style. An SMA is best for markets that are trending, whereas an EMA is more reactive. (It eliminates the lag https://www.sharadhiinfotech.com/ideals-solutions-virtual-data-rooms-review of the SMA because it gives preference to the most recent data.) In addition, the parameters of the MA should be chosen with care based on whether you are seeking a short-term or long-term trend (the 200 EMA would suit a longer timeframe).
It is also essential to make sure you check your work before making it available for review. This is particularly true when dealing with large volumes of data, as errors are more likely to occur. You could also ask your supervisor or colleague review your work to assist you identify any mistakes you might have missed.