11 January 2021

Glossary

Moving Average, MA

Sliding middle – this is the average price of a share or any other tool for a certain number of candles. It is drawn on the graph and looks like a curved line. Its main task is to indicate the three main directions of the trend, ignoring unreasonable price fluctuations up and down.

Sliding middle - this is the average price of a share or any other tool for a certain number of candles. It is drawn on the graph and looks like a curved line. Its main task is to indicate the three main directions of the trend, ignoring unreasonable price fluctuations up and down.

Mathematically, the indicator is a moving average, at each point, it represents the average of the previous number of price values, called the order of the moving average. For example, if each point of the MA is calculated as the average value of prices for one day (D1), then its order is correspondingly equal to one day (D1).

SMA - Simple Moving Average is built as follows: all price values for a selected period are summed up (average order) and divided by the number of these values. In other words, the arithmetic average of the price for the period is found. The prices can be taken as opening prices, closing prices, or any others, depending on the trader's preferences.

Share

Copy link

List of contents