| Moving Average |
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Frequently
used in technical analysis, a Moving Average is an indicator that
shows the average value of a security's price over a period of time.
When calculating, you need to specify the time span (such as 200 days).
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Moving
averages are used to emphasize the direction of a trend and smooth
out price and volume fluctuations or "noise" that can confuse interpretation.
Typically when a stock price moves below its 50-100 day moving average
it is a bad thing, the opposite is true for stocks that protrude their
moving average. |
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Dictionary
