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Explanation;
An average of share prices on a stock market where the calculation is made over a Period which moves forward regurarly
Statement;
If you are calculating something with very high variance the best you may be able to do is figure out themoving average
A simple moving average is calculated on the basis of closing prices of the stock.the 5 day moving avg is the 5 day closing prices divided by 5
A moving average is commonly used with time series data to smooth out short-term fluctuations and highlight longer-term trends or cycles.
A simple moving average (SMA) is a simple, or arithmetic,moving averagethat is calculated by adding theclosing priceof the security for anumber of time periods and then dividing this total by the number of time periods. Short-term averages respond quickly to changes in the price of the underlying, while long-term averages are slow to react.
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