Monday, December 29, 2008

Moving Averages

One of the most basic and widely used indicators in a technical analyst's tool box, moving averages help traders verify existing trends, identify emerging trends, and view overextended trends about to reverse. Moving averages are lines overlaid on a chart indicating long term price trends with short term fluctuations smoothed out.

There are three basic types of moving averages:

Simple

Weighted

Exponential


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1 comment:

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