What is Moving Average?

[Aruna]

Moving average is technical indicator which used to find trend direction ,sometimes it failes

 

 

[satish katwate]

<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>moving average is a tool for identify the trend but it is not a decision making tool</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>it shows a clear diagram of the price and help to identify bullish or bearish trend some times it may be correct or wrong</p>
<p style=”box-sizing: border-box; margin: 0.85em 0px; direction: ltr; color: #777777; font-family: ‘Roboto Slab’; font-size: 13px;”>we can take 21 days in moving average to calculate the trend it is performed in trend zone</p>

[monish kumar]

It is the technical indicator which indicates the buying and selling signals that are trusted only during a trending zone.

Also it is not a decision maker.

[AMARNATH]

<span style=”color: #000000; font-family: sourcesanspro-regular-webfont, Helvetica, Arial, Verdana, sans-serif; font-size: 15px; -webkit-text-stroke-width: 0.15px;”>A widely used indicator in </span>technical analysis<span style=”color: #000000; font-family: sourcesanspro-regular-webfont, Helvetica, Arial, Verdana, sans-serif; font-size: 15px; -webkit-text-stroke-width: 0.15px;”> that helps smooth out </span>price action<span style=”color: #000000; font-family: sourcesanspro-regular-webfont, Helvetica, Arial, Verdana, sans-serif; font-size: 15px; -webkit-text-stroke-width: 0.15px;”> by filtering out the “noise” from random price fluctuations. A moving average (MA) is a trend-following or </span>lagging indicator<span style=”color: #000000; font-family: sourcesanspro-regular-webfont, Helvetica, Arial, Verdana, sans-serif; font-size: 15px; -webkit-text-stroke-width: 0.15px;”> because it is based on past prices. The two basic and commonly used MAs are the </span>simple moving average (SMA),<span style=”color: #000000; font-family: sourcesanspro-regular-webfont, Helvetica, Arial, Verdana, sans-serif; font-size: 15px; -webkit-text-stroke-width: 0.15px;”> which is the simple average of a security over a defined number of time periods, and the </span>exponential moving average (EMA),<span style=”color: #000000; font-family: sourcesanspro-regular-webfont, Helvetica, Arial, Verdana, sans-serif; font-size: 15px; -webkit-text-stroke-width: 0.15px;”> which gives bigger weight to more recent prices. The most common applications of MAs are to identify the trend direction and to determine support and resistance levels. While MAs are useful enough on their own, they also form the basis for other indicators such as the </span>Moving Average Convergence Divergence (MACD).<span style=”color: #000000; font-family: sourcesanspro-regular-webfont, Helvetica, Arial, Verdana, sans-serif; font-size: 15px; -webkit-text-stroke-width: 0.15px;”>

</span>

[prprasad]

It is a technical indicator to identify the trend.

[Author]

Posts