How to calculate the moving avg for stock in stock market?

How to calculate the moving avg for stock in stock market?

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1 answer

by aidan.jacobs , a month ago

@cornelius.fay 

To calculate the moving average for a stock in the stock market, follow these steps:

  1. Determine the time period for the moving average: Decide how many days or periods you want to use for your moving average calculation. Common choices are 50, 100, or 200 periods for medium to long-term moving averages.
  2. Gather the closing prices: Collect the closing prices of the stock for the specified time period.
  3. Add up the closing prices: Add together the closing prices for the chosen time period.
  4. Divide the sum by the number of periods: Divide the total sum obtained in step 3 by the number of periods selected.
  5. Repeat steps 2-4: Move forward one period at a time and repeat steps 2-4 until you have calculated the moving average for all the desired periods.


For example, if you want to calculate the 50-day moving average for a stock, you would add up the closing prices for the 50 most recent trading days and divide the total by 50. Then, continue this process by moving one day forward each time until you have calculated the desired moving average for all the periods you are interested in.