Arithmetic Mean

Dictionary Says

Definition of 'Arithmetic Mean'

A mathematical representation of the typical value of a series of numbers, computed as the sum of all the numbers in the series divided by the count of all numbers in the series.

Arithmetic mean is commonly referred to as "average" or simply as "mean".
Investopedia Says

Investopedia explains 'Arithmetic Mean'

Suppose you wanted to know what the arithmetic mean of a stock's closing price was over the past week. If during the five-day week the stock closed at $14.50, $14.80, $15.20, $15.50, and then $14.00, its arithmetic mean closing price would be equal to the sum of the five numbers ($74.00) divided by five, or $14.80.

Related Video for 'Arithmetic Mean'

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Mode

    A statistical ...
  2. Harmonic Average

    The mean of a ...
  3. Mean

    The simple ...
  4. Winsorized Mean

    A method of ...
  5. Simple Moving Average - SMA

    A simple, or ...
  6. Moving Average - MA

    An indicator ...
  7. Arithmetic Index

    An index of ...
  8. Unweighted Index

    A simple ...
  9. Geometric Mean

    The average of a ...
  10. Trimmed Mean

    A method of ...

Articles Of Interest

  1. How To Calculate Your Investment Return

    How much are your investments actually returning? Find out why the method of calculation matters.
  2. Simple Moving Averages Make Trends Stand Out

    The moving average is easy to calculate and, once plotted on a chart, is a powerful visual trend-spotting tool.
  3. How are moving averages used in trading?

  4. Can you explain the different moving averages? What causes them to act as support/resistance?

  5. What's the difference between an SMA and an EMA?

  6. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  7. Triple Screen Trading System - Part 4

    How can a trader use the Elder-Ray oscillator as the second screen of this system? Find out here.
  8. Triple Screen Trading System - Part 3

    Learn about market wave, the second screen in this three-part system.
  9. Triple Screen Trading System - Part 2

    Market tide is the basis for making trading decisions in this three-part system.
  10. Triple Screen Trading System - Part 1

    Learn to take advantage of both trend-following and oscillator techniques to analyze your trading decisions.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center