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What is the Moving Average (MA)?

Moomoo News ·  Feb 21, 2021 19:49  · Exclusive

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By Eric

In this article, we will introduce MA.

What is the Moving Average (MA)?

In statistics, a moving average is a calculation used to analyze data points by creating a series of averages of different subsets of the full data set. 

In finance, a moving average (MA) is a stock indicator that is commonly used in technical analysis. The reason for calculating the moving average of a stock is to help smooth out the price data by creating a constantly updated average price.

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Source: moomoo

How to set Moving Averages indicators on moomoo?

We can set the MA indicators on moomoo app as follows.

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Source: moomoo

Two major types of Moving Averages

The simplest form of a moving average, known as a simple moving average (SMA), is calculated by taking the arithmetic mean of a given set of values. 

The exponential moving average is a type of moving average that gives more weight to recent prices in an attempt to make it more responsive to new information. 

Source: investopedia

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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