Moving average

Moving average

What is a moving average indicator?

In technical analysis, the moving average is a trending indicator. It is displayed as a line on the chart and used to display the average value of an asset over a set period of time.

To give an example, a simple moving average that displays the average value of the last 20 periods, is referred to as a "20 simple moving average". A 10 period simple moving average will display the average value of the last 10 periods, etc. The period over which the moving average can be calculated can be chosen by the trader.

Moving averages can be used to identify the direction of a trend, to smooth out price movement and are also used as support and resistance.

Learn more about using this indicator for trading:

Moving average indicators: using them to trade

Lesson

Learn how to use moving averages to determine trends and changes in market direction.

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