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Moving Average

Moving averages are indicators used in technical analysis that smooth price data by calculating average prices over a specified time period. A simple moving average (SMA) takes the arithmetic mean of prices over a set number of days, while an exponential moving average (EMA) gives greater weight to more recent prices making it more responsive. Crossovers occur when a price line intersects or indicators cross, signaling potential trend changes. The moving average convergence divergence (MACD) indicator shows the relationship between two moving averages, triggering signals when it crosses above or below its signal line.

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Allan John Sala Limson
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94 views17 pages

Moving Average

Moving averages are indicators used in technical analysis that smooth price data by calculating average prices over a specified time period. A simple moving average (SMA) takes the arithmetic mean of prices over a set number of days, while an exponential moving average (EMA) gives greater weight to more recent prices making it more responsive. Crossovers occur when a price line intersects or indicators cross, signaling potential trend changes. The moving average convergence divergence (MACD) indicator shows the relationship between two moving averages, triggering signals when it crosses above or below its signal line.

Uploaded by

Allan John Sala Limson
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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Moving

Average
MOVING AVERAGE
 A moving average (MA) is a stock indicator
that is commonly used in technical analysis.
AVER
 The reason for calculating the moving average
AGE
of a stock is to help smooth out the price data
over a specified period of time by creating a
constantly updated average price.

 A simple moving average (SMA) is a


calculation that takes the arithmetic mean of
a given set of prices over the specific number
of days in the past; for example, over the
previous 15, 30, 100, or 200 days.
ER IO D # DAY
 Exponential moving averages (EMA) is a P
weighted average that gives greater
importance to the price of a stock on more
recent days, making it an indicator that is
e r m S hort te
more responsive to new information.
Long t rm
MOVING AVERAGE
 A moving average (MA) is a stock indicator
that is commonly used in technical analysis.
MOVING AVERAGE LINE
 The reason for calculating the moving average
of a stock is to help smooth out the price data
over a specified period of time by creating a
constantly updated average price.

 A simple moving average (SMA) is a 15%


calculation that takes the arithmetic mean of
 
a given set of prices over the specific number
of days in the past; for example, over the
SUPPORT
previous 15, 30, 100, or 200 days.
RESISTANCE

 Exponential moving averages (EMA) is a


weighted average that gives greater
importance to the price of a stock on more
recent days, making it an indicator that is
more responsive to new information.
5 DAYS
10 DAY
20 DAY PRICE FLUCTUATION
FORMULA

OF DAYS
FORMULA

P10 P10 P11


P9 P8
5
FORMULA

P10 P11
P9 P8
5
FORMULA

P10 P11
P9 P10
P8

5
CROSSOVER
What Is a Crossover? DEATH CROSS
50 DAY
MOVING AVERAGE
 The crossover is a point on the trading chart in
which a security's price and a technical indicator
line intersect, or when two indicators themselves
cross.
 Crossovers are used to estimate the performance
of a financial instrument and to predict coming
changes in trend, such as reversals or breakouts. 200 DAY
MOVING AVERAGE
GOLDEN CROSS
Moving Average Convergence Divergence
“MACD”
What is a MACD?

 (MACD) is a trend-following momentum indicator


that shows the relationship between two moving
averages of a security’s price. 30%
 
 The MACD is calculated by subtracting the 26-
period Exponential Moving Average (EMA) from
the 12-period EMA.

 MACD triggers technical signals when it crosses


above (to buy) or below (to sell) its signal line.
12-period EMA SIGNAL LINE SELL
BUY 26-period EMA SIGNAL
SIGNAL
Moving
Average

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