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Moving Average Definition

A moving average is a technical indicator that smooths price data by calculating the average price over a set number of periods.

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What is a Moving Average?

Common types include the simple moving average and exponential moving average, which weights recent prices more heavily.

Moving averages help traders identify trend direction and potential support or resistance levels.

Example of Moving Average

A 50-day moving average calculates the average closing price over the previous 50 trading days.

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