What is Moving Average?

[R.Durga Prasad]

Moving average is an technical indicator which shows the Trend movement as a line in a line chart.It is the line showing average price movement.Generally 21 days line charts are taken for the calculation of Moving average.It works like a Magnet.If the price is above the Moving average then it is said to be Bullish and vice-versa.

It is a Trending Indicator.

[Naveen]

moving average is a tool for identify the trend but it is not a decision making tool

it shows a clear diagram of the price and help to identify bullish or bearish trend some times it may be correct or wrong

we can take 21 days in moving average to calculate the trend it is performed in trend zone

[KRISHNA KUMAR MS]

MOVING AVERAGE  is a trend following/lagging indicator based on the average closing prices of the stock. This is called simple moving average
The most common applications are
To identify the trend direction
To find the support and resistance levels
For short term trader 21 DMA is enough where as for long term trader 200 DMA is required since moving averages lag current price the longer the time the greater the degree of lag( ie 200 DMA will have more degree of lag than 21 DMA)

[sreevalli]

Moving average are a common way traders use Moving Averages.  A crossover occurs when a faster Moving average (i.e., shorter period  Moving Average) crosses either above a slow showing Average (i.e., a longer period Mocing Average) which is considered a bullish turnover or below which is considered a bearish turnover

 

[goodwinbritto]

moving average shows whether the tee.d is positive or negative if the trend is above the average then it is a positive trend and if it is below the average the. it is a negative trend.

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