moving average
DefinitionA 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.
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moving average is ...
... part of the Technical Analysis subject.
... part of the Technical Analysis subject.
Related Terms
mean -
bollinger bands, exponential moving average, Chaikin Oscillator, MACD, McClellan Oscillator, Moving Average Convergence/Divergence, overbought/oversold indicator, displaced moving average, Keltner channel, commodity channel index
moving average appears in these other terms
simple moving average
moving average appears in the definitions of these other terms on BusinessDictionary.com
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