moving average


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Related to moving average: Weighted moving average

Moving average

Used in charts and technical analysis, the average of security or commodity prices constructed in a period as short as a few days or as long as several years and showing trends for the latest interval. As each new variable is included in calculating the average, the last variable of the series is deleted.

Moving Average

The average price of a security over a certain time period, calculated continuously. For instance, one may calculate a moving average by adding prices from the most recent trading days (for example, the last 10 days) and dividing by the number of trading days considered (in this case, 10). A moving average 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.

moving average

A series of successive averages of a defined number of variables. As each new variable is included in calculating the average, the last variable of the series is deleted. Suppose a stock's price at the end of each of the last 6 months is $40, $44, $50, $48, $50, and $52. The 4-month moving average in the fifth month is: ($44 + $50 + $48 + $50)/4, or $48. At the end of the sixth month, the 4-month moving average is ($50 + $48 + $50 + $52)/4, or $50. Technical analysts frequently use moving averages to discover trends in stock prices. See also 200-day moving average.

Moving average.

A moving average of securities prices is an average that is recomputed regularly by adding the most recent price and dropping the oldest one.

For example, if you looked at a 365-day moving average on the morning of June 30, the most recent price would be for June 29, and the oldest one would be for June 30 of the previous year.

The next day, the most recent price would be for June 30, and the oldest one for the previous July 1.

Investors may use the moving average of an individual security over a shorter period, such as 5, 10, or 30 days, to determine a good time to buy or sell that security.

For example, you might decide that a stock that is trading above its 10-day moving average is a good buy or that it's time to sell when a stock is trading below its 10-day moving average. The longer the time span, the less volatile the average will be.

moving average

see SALES FORECASTING.

moving average

see TIME-SERIES ANALYSIS.
References in periodicals archive ?
<h1>Key Points in Using Moving Averages:</h1>
The result in Table 4 reports average holding periods, trading frequency and break-even trading cost (BETC) across different lag lengths of moving average strategy based on individual stocks.
The fundamental reason for significant debt or asset accumulation with the moving average, revenue band and rainy day funds is that, as with the fixed expenditure rule, these funds do not incorporate feedback from the stock of debt or assets to current expenditure.
[5] Yongzhen Zhuang; Lei Chen; Wang, X.S.; Jie Lian, "A Weighted Moving Average -based Approach for Cleaning Sensor Data," in Distributed Computing Systems, 2007.
May saw 164 CMBS conduit loans liquidated, an 11 percent increase from the month before and to percent above the 12-month moving average of 149.
The euro's rise weighed broadly on the dollar, helping send the Australian dollar to its highest in five months and the New Zealand dollar to its strongest since late January, while the dollar index plunged through its 30- and 55-day moving averages.
Three-month moving averages can remove some of the volatility of preliminary data and provide a more tempered trend of payroll employment.
To combine data from all prefectures and examine trends at the national level, we calculated the number of reported ILI cases per sentinel per week after adjusting the epidemic curves with a 5-week unweighted moving average (reported ILI cases per sentinel per week [RC/S/W]) as an indicator of ILI activity.
The Topix has seen a "golden cross" (a bullish sign where a shorter moving average crosses upward through a longer moving average) between its 40-week and 80-week moving averages.
The SIA's Global Sales Report (GSR) is a three-month moving average of sales activity.
In terms of funding, the CMA called for a federal contribution that is locked-in for a period of five years, with an escalator tied to a three-year moving average of per capita GDP, rising to a target of 50% of provincial/territorial per capita health spending for core services.