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Moving average

A rolling average of price over a fixed window, used to smooth noise.

A moving average (MA) is a statistic that recomputes the average of the last N closing prices each time a new bar arrives, dragging a smoothed line along the chart. It is the oldest and most widely used trend-following indicator in technical analysis.

Traders read moving averages two ways: as a dynamic trend filter (price above a long MA = uptrend) and as a dynamic support/resistance level (price tends to pull back to it). The two most common variants are the simple moving average (SMA) and the exponential moving average (EMA), which differ in how they weight older observations.

A moving average always lags price: the longer the window, the more lag and the less noise. Choosing the window length is the central trade-off — too short and it whipsaws, too long and signals arrive after the move is over.

Formel

MA_t = (P_{t} + P_{t-1} + ... + P_{t-N+1}) / N

Beispiel

20-period MA of closes [100, 102, 101, ..., 110] = sum of the last 20 closes ÷ 20. If the sum is 2,080 then MA = 104.

Wie Noon Barbari Moving average nutzt

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See the indicators reference

Verwandte Begriffe

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