Moving Average (Ma)
| A moving average (MA) is a technical indicator used by traders to forecast the direction of the trend of an asset. MA's are calculated by taking the average of a security's price over a set period of time. The most common time periods used are 10, 20, 50, 100, and 200 days. MA's are lagging indicators, meaning they follow the trend. They are used to smooth out the noise in price data and to help traders identify the direction of the trend. MA's are not perfect, and they do have their limitations. For example, they are often late to signal a change in trend, and they can give false signals in a choppy market. However, MA's are a valuable tool that can help traders make better-informed decisions. |
Share this glosssary
