Short-Term Moving Average

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Short-Term Moving Average

The average price of a security over several days, calculated continuously. For instance, one may calculate a short-term moving average by adding the closing prices from each day for the past week and dividing by the number of trading days considered. As with all moving averages, short-term moving averages may or may not be weighted. Moving averages help smooth out noise that may be present in a security's price on a given trading day. See also: Simple Moving Average, Exponential Moving Average.
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