What is Moving Average?

[harthik]

moving average is a technical indicator for a trending period help to identify the bullish and bearish trend on a average price of 21 days period

[Sathish Kumar P T]

This was not part of the program.

Need to do self-study.

[EQSIS]

Yes this content was not covered in some of our program, but it is important to practice technical analysis.

Moving average is an indicator calculate the average of recent n days. here (n) can be defined by the users.

Let say, i want to understand the stock trend in the context of last one month, then i may plot 21 day moving average and if price is above 21 day, it can be treated as bullish.
moving average may act as magnet, it attract the price toward the moving average if the last traded price is highly deviated from average. Some time it repels the price if it is trading at moving average level.

combination of Moving averages can be used to create trade positions

The moving average are criticized for its late reaction. Refer the moving average video under indicators

[Milanrp]

Moving average is a trending zone technical indicator.

[swaroopa]

Moving average works only in the trending but not in sideways. If The trend is Rise more than 21 days than its a Bullish trend, if the trend lows after 21 days than its Bearish Trend.

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