Definitions for **"MOVING AVERAGE"**

Moving averages are one way to view historical price levels. Moving average take into account some number of price periods (a new period is added and the oldest is dropped from the calculation) to show average price over time. It is possible to weight more recent prices and by linearly or exponentially smoothing the average lines. The longer the averaging period, the more lag you will see between the average and the most recent prices.

The average of security or commodity prices in a given time period ranging from days to years with the objective to determine trends for the latest time intervals. As new variables are included in the calculation of the moving average, the last variable of the series is deleted.

A technical analysis term meaning the average price of a security over a specified time period.

A method of smoothing prices to more easily discern market trends.

The average of all the market prices for a security drawn from a progressing block of time.

a lagging indicator of price action that replaces the oldest price with the most recent price

A trend following indicator that smoothes price action by averaging the most recent number of session's closing prices in order to make it easier to view the underlying trend. Signals are generate when prices move above and below a moving average. Multiple moving averages are also used simultaneously and signals are generated when on or more of these lines cross.

Calculations that smooth the price action in a commodity or security in order to reveal underlying trends. The 5 day simple moving average, for instance, is a series of values that equal the straight average of the preceding 5 daily settlement prices for each day. A weighted moving average places a greater weight on more recent periods than on those further in the past.

The average of a value over the previous x days.... more on: Moving average

Sliding (dynamic) average. The indicator applied in a technical analysis for definition of the tendency in the market.

Sliding (dynamic) average: An indicator used in a technical expertise for definition of the tendency in the market.

A mathematical procedure to smooth or eliminate the fluctuations in data and to assist in determining when to buy and sell. Moving averages emphasize the direction of a trend, confirm trend reversals and smooth out price and volume fluctuations or "noise" that can confuse interpretation of the market; the sum of a value plus a selected number of previous values divided by the total number of values.

Shows the average value of data in its time window, five days, ten days, etc. in a running line. A five-day moving average shows the average price for the past five days in a running line.

A technique that technical analysts use to gain insight into the direction of a stock and to look for evidence of a buy or sell recommendation. Analysts look at 5, 50 and 200-day moving averages. The 50-day measure is an indicator of the price trend for a security. The 200-day moving average is a longer-term measure used in comparison with the shorter averages to assess the stock's overall direction.

Moving averages are average prices of a stock for the past few days or months. These averages, calculated for a short period and a long period, indicate a stock's price trend minus minor fluctuations. 200 days is a commonly followed period by most technical analysts for a long term moving average. A 50-day moving average is a short term moving average. If the short term moving average for a stock crosses and moves higher than the long term moving average, it indicates that it is the right time to buy the stock. If it dips below, it is good sell signal. Moving averages are also taken as the resistance level for a stock. The short term moving average is the first resistance level and the long term one is the second resistance level. If the current price of a stock is lower than the first resistance level then there is a fat chance that the price will climb back to this level in the short run, but would generally settle at the second level in the long run.

The average of the last 'x' number of numerical values out of a set that contains a larger number of historical values. A six-month simple moving average forecast is the average of the demand from the previous six periods; with each new period the last period is added and the oldest period deleted before recalculating the new average.

Abbreviation: mvg. Average price of a security/index/futures contract/bond over a fixed period of time. Any aspect of price can be used, but the most popular is the closing price. Eg, a 39-week moving average is the sum of the last 39 weeks' closing prices divided by 39. Each week the oldest price is dropped & the current price added before the average is recalculated. It is usually represented by a line on a chart with each plot on the line being one 39-week average figure. Moving averages are used to smooth out the fluctuations in price action so the underlying trend can more clearly be seen. Some hold a stock if it remains above its 50-day moving average. This “smoothing out” comes at a price. It can obliterate the fine details & clues markets leave & which experienced technicians can use to their advantage. Solution: use the moving average, but only as 1 tool among many.

Describes the weighted average of a number of successive figures. However, the number of figures used to calculate the moving average is aimed at levelling out the effect of seasonal irregularities.

In security charts, the average price fluctuations over as short as a few days or as long as several years and showing trends for the latest interval. Each point on a 50-day (or 200-day) moving average curve is calculated by averaging the closing prices from the previous 50 (or 200) days of trading. The average is a way to compare long-term price trends with recent price changes. Investors use the 50-day moving average to gauge intermediate-term trading and the 200-day average for long-term trend analysis.

the average of a stock price over a specified time period. A moving average smooths price and volume fluctuations and emphasizes the direction of a trend. An exponential moving average gives greater weight to the most recent price action.

Moving averages are a key tool of technical analysis. By ironing out daily price fluctuations moving averages help traders reinforce their identification of trends. Also, moving averages, when looked at in relation to daily price charts, can provide traders with buy and sell signals. A simple moving average shows - as the name suggests - the average price of a stock over a specific number of days. A simple moving average is calculated by totalling the closing prices of a stock over a prescribed period (say, 30 days) and dividing that total by the number of days in the period (i.e. 30). The resulting number is the average. In order for the average to move, the most recent closing price is added to the previous total and the oldest closing price used in that total is subtracted. The new total is then divided by the number of days of the moving average, and the process is repeated. The moving average that covers around 200 days is a favourite among analysts as a measurement of long range trends.

The mean of a series of measurements taken over a period of time.

Method of smoothing out data on price charts so that trends are more easy to spot. Average refers to a mathematical average or a statistical "mean" that is plotted over the original curve.

The average of a number of adjacent terms in a time series. They may be plotted at the center of the period (centred) or the end of the period (lagged). See also Exponential moving average.

See moving average in the section titled Tutorials on Technical Analysis Indicators in the Technical Analysis section. There is an extensive discussion of them there.

a created by adding the previous days closing prices and then dividing by the number of prices in the test

a forecasting technique that simplifies trend analysis by smoothing fluctuations that occur in measurements taken over time

a form of average which has been adjusted to allow for seasonal or cyclical components of a time series

a mathematical technique that smoothes out jagged price data

a method of calculating the average

an average price of a certain currency over a certain time interval (in days, hours, minutes etc) during an observation period divided by these time intervals

an average value computed using data surrounding each data point in a chart

a technical analysis indicator that smoothes a price series and helps to identify trends

a technical analysis indicator which provides a way of smoothing out data and which is used to confirm price trends

a very important technical tool which smoothens the wild day-to-day gyrations

a very useful tool, which allows you to assess the price trend over time

a way to smooth out price s, or similar values, on a graph

The moving average of a stocks represents the average price of that security in the time span from a few days to a few years and indicates the stock's price trend. Technical analysts use a company's moving average to determine whether to buy or sell a stock, as an indication to buy is when the short-term moving average rises above the long-term moving average and an indication to sell is when the short-term moving average falls below the long-term moving average.

A statistical analysis tool that gives buy and sell signals. A time span is chosen, say 40 days. The average is the last forty days' prices divided by 40. On day 41 a day is dropped and day 41 added and re-divided and so on. The longer the period chosen, the smoother the curve and the fewer buy and sell signals are generated.

a wavy line that has nothing to do with price movement if you have an open position

A moving average of securities prices is an average that is recomputed regularly by adding the most recent price and dropping the oldest one. For example, if you looked at a 365-day moving average on the morning of June 30, the most recent price to be included would be for June 29, and the oldest one would be for June 30 of the previous year. The next day, the most recent price would be for June 30, and the oldest one for the previous July 1. Thus the average is moving one.

The average price of a security or currency over a specified time period used to spot pricing trends by smoothing out the large fluctuations. See Simple Moving Average and Exponential Moving Average.

A trend following indicator that is usually used in trending markets. It shows the average value of securities price over a period of time, for example a simple five-day moving average adds the last five days closing prices and divides the total by 5. There are simple, weighted and exponential moving averages.

A basic method of charting a metal price which reflects the average progress over a elected period of time, eg one month or annual moving averages.

An average that is based on security or commodity prices over a period of time (few days to few years) that shows trends for the latest period. It is a rolling average when the latest day's figures are included in the average and the oldest day's figures are not included.

A continuous smoothing technique computed by averaging a series of numbers (price, volume, etc.) progressively over a period of time. The series is often a week, a month or a quarter in length and is computed anew as each day or week goes by. It is often then plotted on a chart with the raw data for analysis purposes.

A way of smoothing a set of data, widely used in price time series.

is method of smoothing by averaging n terms of the time series. A moving average may be centred in which case it is plotted at the middle of the time interval which it is the average of, or lagged in which case it is plotted at the last term included. Centred moving averages are often used for smoothing data. A moving average which has a number of terms equal to the length of a cycle will remove that cycle from the data. A moving average with a number of terms which is half the cycle period will remove shorter cycles and so emphasize the cycle. The difference between these these last two will also remove longer cycles and so emphasize cycles of about the selected period only.

Probably the most popular indicator used in technical analysis. It is used to show the average value of a security`s price over a specific period of time. et Income — A company`s gross sales minus depreciation, interest, taxes and other expenses.

the average of commodity prices constructed for a period as short as a few days or as long as several years, which shows trends for the latest interval. For example, a 30-day moving average includes yesterdayâ€(tm)s figures; tomorrow, the same average will include todayâ€(tm)s figures and will no longer show those for the earliest date included in yesterdayâ€(tm)s average. Every day it records figures for the latest day and drops those for the earliest day.

A moving average is an average of a security's price over a specific time period. The average changes, for example, on a 30-day moving average, so that it includes the most current 30 trading days. Moving averages often indicate levels of support or resistance for a security.

A way of smoothing out (i.e. removing the highs and lows) of a series of figures (usually shown as a graph). If you have, say, 12 months of sales figures and you decide on a moving average period of 3 months, you would add three months together, divide that by three and end up with an average for each month of the three month period. You would then plot that single figure in place of the original monthly points on your graph. A moving average is useful for displaying trends. See Normalize .

An average of prices for a specified number of days. If it is a three (3) day moving average, for example, the first three days' prices are averaged (1,2,3), followed by the next three days' average price (2,3,4), and so on. Moving averages are used by technicians to spot changes in trends.

A way of smoothing a set of price/rate data by taking the average price of data range of values. The moving average is one of the most useful and objective tools available to the technical analyst. Moving averages show the average value of a security's price over a certain number of time periods. The most commonly used moving averages are the 20, 30, 50, 100, and 200 day averages. Moving averages smooth a data series and make it easier to spot trends and smooth out price and volume fluctuations or noise that can confuse interpretation. It moves because for each calculation, the latest x number of time periods' data are used. Using the data from prior time periods, a moving average lags the market. An exponentially smoothed moving average (EMA) gives greater weight to the more recent data, in an attempt to reduce the lag. The shorter the time span, the more sensitive the moving average will be to price changes. The longer the time span, the less sensitive or the more smoothed the moving average will be.

A widely used technical analysis tool. A 200 day moving average would consist of the last 200 days' closing price added together and divided by 200. Plot a point on a graph each day with the newest day replacing the oldest.

Chartist tool showing price average over time (can be weighted or simple) in order to forecast future trends.

The mean of prices over a pre-defined period, for instance, the previous five days. The moving average for different time periods can be charted to generate short- and medium-term buy/sell signals. For instance, funds have in the past tended to buy when the price crosses the 40-day moving average from below, and to sell when it cuts the average from above.

(Moyenne mobile) Method used to track changes in the performance of an asset or a portfolio over a series of consecutive periods that change over time. It makes it possible to downplay short term fluctuations and to focus on the long term trend.

Shows the average value of a security's price over time. Our charts use exponential moving averages. Chart Keys: Green: 5-day exponential moving average (EMA) Red: 20-day exponential moving average (EMA) MOVING AVERAGE CONVERGENCE AND DIVERGENCE (MACD) — The difference between a fast exponential moving average (fast EMA) and a slow exponential moving average (slow EMA). Chart Keys: Periods: 9 and 15, Signal line period: 5 MULTIPLIER — (1) "Effect": The ability of the commercial banking system to "create money" through lending activity. (2) Options: Refers to the $100 multiplier used to determine aggregate strike price and premiums on index options.

A method for reducing random fluctuation in a time series by recomputing the value for every data point based on the average of preceding time periods (see Smoothing) 26, 52

An artificially constructed time series in which each figure (annual, monthly, daily) is replaced by the average, i.e. arithmetic mean of itself and values corresponding to a number of preceding periods. For instance, in a 15â€‘day moving average each daily figure is replaced by the mean of itself and those of the immediately preceding 14 days.

An average of data for a certain number of time periods. It moves because for each calculation, we use the latest x number of time periods' data. By definition, a moving average lags the market. An exponentially smoothed moving average (EMA) gives greater weight to the more recent data, in an attempt to reduce the lag.

A series of calculations made by initially taking the simple average, or arithmetic mean, of a consecutive number of items, and then dropping the first item and adding the next item in sequence and averaging, so that the number of items in the series remains constant. This is a continuous process.

An average measure of prices that is computed using a fixed number of days. For example, a 20 day moving average is computed using the last 20 days. There are two common types of moving averages: Simple Moving Average, and Exponential Moving Average. A measure of volatility, N is a concept used by the Turtles (student's of Richard Dennis and Bill Eckhardt) to represent the underlying volatility of a particular market. N is simply a 20-day Average True Range. Conceptually, N represents the average range in price movement that a particular market makes in a single day, accounting for opening gaps. N was measured in the same points as the underlying contract. See the Original Turtle Rules Document for more info on N as used by the Turtles.

A average closing price for a stock over a 50-day or 200-day period. The moving average smoothes out day-to-day swings in prices and creates a context in which to judge price trends. Calculated by dividing the number of days (either 50 or 200) into the average price of a stock for the last 50 or 200 days (determined by adding the closing prices for the last 50 or 200 days).

A perpetual inventory cost flow alternative whereby the cost of goods sold and the cost of ending inventory are determined by using a weighted-average cost of all merchandise on hand after each purchase.

A trend following indicator that works best in a trading environment. Moving averages smooth out price action but operate with a time lag. A simple 10-day moving average of a stock, for example, adds up the last 10 days' closing prices and divides by 10. That procedure is repeated each day. There are three types of moving averages: simple, weighted, and exponentially smoothed.

The average of a company's stock prices over in a period as short as a few days or as long as several years and showing trends for the given interval. As each new stock price is included in calculating the average, the earliest price of the series is deleted.

The average price of a stock / market over any given (rolling) period of time. Used primarily as an indication of trend, less useful in rangebound markets. Usually plotted at the end of the time period covered but can be centred or shifted as required.

Used in charts and technical analysis, the average of security or commodity prices constructed over a varied period, whether several years or as short as a few days, showing fluctuating trends for the latest interval.

A Technical Analysis phrase that is used to provide confirmation in respect of trending by smoothing price to show the underlying trend direction. This is the most commonly used average in Technical Analysis with the data being specifically used to show whether a stocks price is going high or low.

An average that changes with an additional purchase. See perpetual moving average in Explanation of Inventory & Cost of Goods Sold. To Top

Frequently used in technical analysis, a moving average is an indicator that shows the average value of a security's price over a period of time. When calculating, you need to specify the time span, i.e. 200 days and so forth.

An arithmetic average of a certain number (n) of the most recent observations. As each new observation is added, the oldest observation is dropped. The value of n (the number of periods to use for the average) reflects responsiveness versus stability in the same way that the choice of smoothing constant does in exponential smoothing. There are two types of moving average, simple and weighted. See: simple moving average, weighted moving average.

Used in charts and technical analysis, the average of security or commodity prices constructed in a period as short as a few days or as long as several years and showing trends for the latest interval. As each new variable is included in calculating the average, the last variable of the series is deleted.

See on: Wikipedia Investopedia An indicator frequently used in technical analysis showing the average value of a security's price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance.

Used in charts and technical analysis, an average of the prices of the security or commodity is calculated over set amount of time and showing trends for the latest interval. When a new variable is calculated and added to the series, the oldest variable is deleted

In security charts, the moving average is a curve that averages price fluctuations of the security over a 50-day or 200-day interval. Each point on the moving average curve is calculated by averaging the closing prices from the previous 50 (or 200) days of trading. The moving average is a way to compare long-term price trends with recent price changes.

Moving averages can be computer for different time periods. The most common are 50 day and 200 day moving averages. A 50 day (simple) moving average is computed by summing the last 50 day’s data points and dividing by 50.

In statistics, a moving average is one of a family of similar techniques used to analyze time series data. It is applied in finance and especially in technical analysis.

a curved trendline line

an indicator that reveals

a popular technical indicator which can be use to generate a buy or a sell recommendation

(see Filters)

maintenance call managed account

a moving mean of data