This is my first minute blog, which should take you under a minute to skim. Enjoy.
A moving average is an indicator that smooths out the bumpy chart you usually see. It works like this: You take the close prices of the last # days (e.x., 50) and average them. You then plot that number for each day. That’s a simple moving average. Exponential moving averages weight recent close prices more heavily.
Moving averages of different lengths can be used together to create more advanced indicators, which we will cover later.
– Michael