Analog Devices, Inc. is a global semiconductor company. Co. combines analog, digital and software technologies into solutions that help drive advancements in digitized factories, mobility and digital healthcare, combat climate change, and connect humans and the world. It designs, manufactures, tests and markets a broad portfolio of solutions, including integrated circuits (ICs), software and subsystems that leverage high-performance analog, mixed-signal and digital signal processing technologies.
When researching a stock like Analog Devices, many investors are the most familiar with Fundamental Analysis — looking at a company's balance sheet, earnings, revenues, and what's happening in that company's underlying business. Investors who use Fundamental Analysis to identify good stocks to buy or sell can also benefit from ADI Technical Analysis to help find a good entry or exit point. Technical Analysis is blind to the fundamentals and looks only at the trading data for ADI stock — the real life supply and demand for the stock over time — and examines that data in different ways. One of those ways is to calculate a Simpe Moving Average ("SMA") by looking back a certain number of days. One of the most popular "longer look-backs" is the ADI 200 day moving average ("ADI 200 DMA"), while one of the most popular "shorter look-backs" is the ADI 50 day moving average ("ADI 50 DMA"). A chart showing both of these popular moving averages is shown on this page for Analog Devices. Comparing two moving averages against each other can be a useful visualization tool: by calculating the difference between the ADI 200 DMA and the ADI 50 DMA, we get a moving average convergence divergence indicator ("ADI MACD"). The ADI MACD chart, in conjunction with the chart of the moving averages, basically helps in visualizing how the moving averages are showing convergence (moving closer together), or divergence (moving farther apart). |
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Video: Technical Analysis