What is a moving average?

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by alan , in category: Stocks and Equities , 7 months ago

What is a moving average?

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1 answer

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by richie , 7 months ago

@alan 

A moving average is a statistical calculation that is used to analyze data points over a certain period of time and smooth out fluctuations to identify trends and patterns. It is calculated by taking the average of a specific number of data points within a given time frame and moving the window of data points forward to calculate the average for subsequent periods. As new data points are added, the oldest data points are dropped from the calculation. Moving averages are commonly used in technical analysis of financial data, such as stock prices, to identify short-term and long-term trends and assist in making future predictions.