What is a moving average?

Economics Stock Market Questions



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What is a moving average?

A moving average is a statistical calculation used in stock market analysis to smooth out fluctuations in price data over a specific period of time. It is calculated by adding up the closing prices of a stock or index over a certain number of periods and then dividing the sum by the number of periods. This moving average line is plotted on a stock chart to help identify trends and potential support or resistance levels.