Moving Average

Technical Analysis

Definition

A technical indicator that smooths price data by creating a constantly updated average price over a specific time period, commonly used to identify trend direction and support/resistance levels.

Key Points

  • Simple MA averages prices over set period
  • Exponential MA gives more weight to recent prices
  • Commonly used periods: 20, 50, 100, 200 days

Examples

50-day moving average
200-day moving average