Moving Average indicator (MA, EMA, muoving, moving average)

Moving Average - is a moving average that follows the price movement. The essence of this indicator is to determine the trend direction and its smoothing. When calculating the muving is used mathematical averaging of the price of any instrument for a selected period.

Moving Average (Moving Average)
Moving Average (Moving Average)

There are different types of Moving Average indicator. For technical analysis of the market, such moving averages as simple, exponential, smoothed and weighted are used.

Simple Moving Average (simple moving average) is the sum of the closing prices of an instrument for a specified number of unit periods divided by the number of those periods.

In calculating Exponential Moving Average (exponential moving average) a certain proportion of the current closing price is added to the previous moving average value. The calculation of the smoothed average also gives more weight to the closing price of the market.

Moving Average indicator is most often used for technical analysis in conjunction with other indicators and by oscillators.

Read more about Moving Average

Leave a Reply

Back to top button