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Glossary › smoothing

Trading glossary · indicators

smoothing

Averaging prices so the line looks calmer and the tiny wiggles fade away.

The fuller meaning

Reducing noise by averaging, as in moving averages and the stochastic's smoothed %K. More smoothing means a calmer line but more lag; EMAs smooth with a weighting that favours recent closes.

smoothing.

Related words

61.8% level · ATR · ATR expansion · bearish divergence · Bollinger Bands · bullish divergence · crossover · %D · death cross · divergence