What is a moving average?
Moving averages are a common tool used by technical analysts to identify the trend of a stock price or index. Two common examples which are used is the simple moving average and the exponential moving average. The simple moving average uses all the data point in equal weight. However, the exponential moving average focuses more weight on the recent price. Moving averages can be used for the period the investor wants to analyse. Most commonly used is the 50 or …