A technical analysis term meaning the average price of a security over a specified time period (the most common being 20, 30, 50, 100 and 200 days), used in order to spot pricing trends by flattening out large fluctuations. This is perhaps the most commonly used variable in technical analysis. Moving average data is used to create charts that show whether a stock's price is trending up or down. They can be used to track daily, weekly, or monthly patterns. Each new day's (or week's or month's) numbers are added to the average and the oldest numbers are dropped; thus, the average "moves" over time. In general, the shorter the time frame used, the more volatile the prices will appear, so, for example, 20 day moving average lines tend to move up and down more than 200 day moving average lines.
Related information about moving average:
- Moving average - Wikipedia, the free encyclopedia
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A simple moving average is formed by computing the average price of a security over a specific number of periods. Most moving averages are based on closing ...
- Moving Average (MA) Definition | Investopedia
An indicator frequently used in technical analysis showing the average value of a security's price over a set period. Moving averages are generally used to ...
- Moving Average -- from Wolfram MathWorld
DOWNLOAD Mathematica Notebook MovingAverage. Given a sequence {a_i}_(i =1)^N , an n -moving average is a new sequence {s_i}_(i=1)^(N-n+1 defined ...
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For example, if we take the closing prices of the last 10 days, add them together and divide the result by 10, we have created a 10-day simple moving average ...
- Incredible Charts: Moving Averages
The Moving Average smooths price data to create a powerful measure of trend direction. Simple, weighted and exponential moving averages are most popular.
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- How to Use Moving Averages
But all you really have to know is that a moving average line is just the ... I use two moving averages: the 10 period simple moving average (SMA) and the 30 ...