Simple Moving Average

Simple Moving Average

 

Simple moving average is the most common among the moving averages. It is computed by taking the mean or average of prices over a given period. Prices can be the daily open, high, low, close (most widely used), volume, et cetera of a given security.

The 9-day moving average is calculated by averaging the first nine days. On Day 10, the prices of Day 2 through Day 10 are added and divided the total by 9 and so on. 

 

 

Just always remember that a moving average with a shorter period has a greater probability of receiving false signals as compared to a longer moving average which has less sensitivity to recent changes in the data.

This entry was posted in Price Indicators. Bookmark the permalink.

12 Responses to Simple Moving Average

  1. Fantastic ideas, props to you for having the initiave to come up with it

  2. Great ideas, props to you for taking the time to write it down

  3. Lovely post, thanks to whoever thought of it and for having the initiave to come up with it

  4. I don’t agree with it, many thanks for taking the time to put it up

  5. Pilar Cukaj says:

    I cant say Im in complete accordance, thanks for having the initiave to write it down

  6. I can’t say I completely agree, thanks to whoever thought of it and for taking the time to write it down

  7. Fantastic ideas, props to you for taking the time to come up with it

  8. Great ideas, thanks for having the initiave to think of it

  9. That is nice to definitely find a site where the blogger knows what they are talking about.

  10. Together with the whole thing that appears to be developing within this particular subject material, your opinions are actually rather radical. However, I am sorry, but I do not give credence to your whole suggestion, all be it radical none the less. It appears to me that your remarks are actually not completely validated and in simple fact you are yourself not even entirely certain of your point. In any case I did appreciate reading it.

  11. 106 107 says:

    Fantastic ideas, props to you for having the initiave to put your ideas down

  12. Lovely ideas, many thanks for showing the initiative to put it up

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>