A moving average is a technical analysis indicator that helps smooth out price action by filtering out the "noise" from random price fluctuations.
| Moving Average (MA) | A moving average (MA) is a widely used indicator in technical analysis that helps smooth out price action by filtering out the "noise" from random short-term price fluctuations. It is a trend-following, or lagging, indicator because it is based on past prices.
The two basic and commonly used moving averages are the simple moving average (SMA), which is the simple average of a security over a defined number of time periods, and the exponential moving average (EMA), which gives greater weight to more recent prices. | Read More » | Related to "Moving Average (MA)" | | Simple Moving Average | A simple moving average (SMA) is an arithmetic moving average calculated by adding recent closing prices and then dividing that by the number of periods. | Read More » | | Lagging Indicator | A lagging indicator is a financial sign that becomes apparent only after a large economic shift has taken place. Therefore, lagging indicators confirm long-term trends, but they do not predict them. | Read More » | | Death Cross | A death cross pattern is defined as that which occurs when a security's short-term moving average drops below its long-term moving average. | Read More » | | | | | CONNECT WITH INVESTOPEDIA | | | | | |
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