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the average of price movement is called moving average. if the price is above the moving average then it is bullish and if the price is below the moving average then bearish
<span style=”color: #777777; font-family: ‘Open Sans’; font-size: 13px;”>Moving Average is the indicator that can be applied for analysis with trending zone.</span><br style=”box-sizing: border-box; color: #777777; font-family: ‘Open Sans’; font-size: 13px;” /><span style=”color: #777777; font-family: ‘Open Sans’; font-size: 13px;”>This indicator basically smoothen the trend with the average price value previous 21 days.</span><br style=”box-sizing: border-box; color: #777777; font-family: ‘Open Sans’; font-size: 13px;” /><span style=”color: #777777; font-family: ‘Open Sans’; font-size: 13px;”>The trend will be positive as long as the current price is above the average and negative when it goes below the average.</span><br style=”box-sizing: border-box; color: #777777; font-family: ‘Open Sans’; font-size: 13px;” /><span style=”color: #777777; font-family: ‘Open Sans’; font-size: 13px;”>This indicator does not help during the non trending period.</span>
Moving Average is a technical Indicator which is used to predict the future price movements. This indicator will plot a line chart with the past average prices. The current trend of the stock price is understood based on the relative position of the MA line.
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