Moving average (MA) - Financial definition
Financial acronyms
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Concise definition of the term moving average
A moving average is a technique used to smooth data in a series of data points in order to make trends more visible. It consists of calculating subsequent mean values from a subsection of the data series.
Comprehensive definition of the term moving average
This technique is widely used to analyze time series data, e.g. by technical analysts, who use it to on stock price graphs to make predictions on future stock price movement tendencies.
There are two types of moving average: simple moving average, and weighted moving average.