Glossary › moving average
Trading glossary · indicators
moving average
A line that shows the average price over the last several candles, smoothing out the ups and downs.
The fuller meaning
The average price over a set number of periods, recalculated each candle so it moves with price. Simple averages weight every candle equally and exponential ones favour recent prices; they show trend direction and act as dynamic support and resistance, but they turn only after price has turned.
moving average.
Related words
61.8% level · ATR · ATR expansion · bearish divergence · Bollinger Bands · bullish divergence · crossover · %D · death cross · divergence