Moving Average - MA

Filed Under » , , , ,
Dictionary Says

Definition of 'Moving Average - MA'

An indicator frequently used in technical analysis showing the average value of a security's price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance.

Moving Average (MA)
Investopedia Says

Investopedia explains 'Moving Average - MA'

Moving averages are used to emphasize the direction of a trend and to smooth out price and volume fluctuations, or "noise", that can confuse interpretation. Typically, upward momentum is confirmed when a short-term average (e.g.15-day) crosses above a longer-term average (e.g. 50-day). Downward momentum is confirmed when a short-term average crosses below a long-term average.

Related Video for 'Moving Average - MA'

Articles Of Interest

  1.

    Moving Average

    Learn about this basic technical indicator and how you can use it to chart the value of a security's price over a set period.

  2. Moving Average Explosions

    Find out how you can profit from this short squeeze strategy.

  3. 3 Key Markets To Follow When Trading FX

    With the increased interconnectivity of the global markets these days, it pays to understand market relationships.

  4. Double Exponential Moving Averages Explained

    This tweak on moving averages gives traders faster access to the information they need.

  5. Forex: The Moving Average MACD Combo

    Learn a strategy with clear entry and exit levels that will get you into a trend at the right time.

  6. Combined Forces Power Forex Snap Strategy

    Stochastic and MACD oscillators can help isolate greater opportunities in range-bound markets.

  7. Moving Average Envelopes: Refining A Popular Trading Tool

    Traders can benefit from experimenting with envelopes, which help spot trends after they develop.

  8. Do Adaptive Moving Averages Lead To Better Results?

    These complex indicators can help traders interpret trend changes, but are they too good to be true?

  9. How are moving averages used in trading?

    Moving averages are very popular tools used by technical traders to measure momentum. The main purpose of these averages is to smooth price data so traders can be in a better position to gauge ...

  10. What is the difference between a simple moving average and an exponential moving average?

    The only difference between these two types of moving average is the sensitivity each one shows to changes in the data used in its calculation. More specifically, the exponential moving average ...
comments powered by Disqus
Marketplace
Hot Definitions

  1. Network Effect

    A phenomenon whereby a good or service becomes more valuable when more people use it. The internet is a good example...

  2. Racketeering

    Racketeering refers to criminal activity that is performed to benefit an organization such as a crime syndicate. Examples of racketeering activity include...

  3. Lawful Money

    Any form of currency issued by the United States Treasury and not the Federal Reserve System, including gold and silver coins, Treasury notes, and Treasury bonds. Lawful money stands in contrast to fiat money, to which the government assigns value although it has no intrinsic value of its own and is not backed by reserves.

  4. Fast Market Rule

    A rule in the United Kingdom that permits market makers to trade outside quoted ranges, when an exchange determines that market movements are so sharp that quotes cannot be kept current.

  5. Absorption Rate

    The rate at which available homes are sold in a specific real estate market during a given time period.

  6. Yellow Sheets

    A United States bulletin that provides updated bid and ask prices as well as other information on over-the-counter (OTC) corporate bonds...
Trading Center