moving average


moving average
An average of prices for a specified number of days. If it is a three (3) day moving average, for example, the first three days' prices are averaged (1,2,3), followed by the next three days' average price (2,3,4), and so on. Moving averages are used by technicians to spot changes in trends. The CENTER ONLINE Futures Glossary
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Used in charts and technical analysis, the average of security or commodity prices constructed in a period as short as a few days or as long as several years and showing trends for the latest interval. As each new variable is included in calculating the average, the last variable of the series is deleted. Bloomberg Financial Dictionary

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moving average moving average average1

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   A technical analysis indicator that provides a way of smoothing data and is used to confirm price trends. It reduces the effects of isolated sharp price movements and shows the underlying trend more clearly. A moving average is usually calculated by adding a series of closing prices and then averaging the data on a period-by-period basis. As the period moves on, the oldest price in the sequence is dropped and replaced by the current price. (Figure 12.)
   ► See also Technical Analysis.

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moving average UK US noun [C]
an average that is calculated by using the average of several periods of time up to the present. A moving average changes regularly, with the earliest amount being replaced with the amount based on the most recent data: »

Month-by-month figures are notoriously volatile, whereas a moving average smooths out the effects of the business cycle.

a four-week/three-month/10-year, etc. moving average »

Volumes were heavy, reaching 4.4m shares, compared with the 15-day moving average of 2.6m.


Financial and business terms. 2012.

Look at other dictionaries:

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  • Moving average — Used in charts and technical analysis, the average of security or commodity prices constructed in a period as short as a few days or as Long as several years and showing trends for the latest interval. As each new variable is included in… …   Financial and business terms

  • Moving Average - MA — An indicator frequently used in technical analysis showing the average value of a security s price over a set period. Moving averages are generally used to measure momentum and define areas of possible support and resistance. Moving averages are… …   Investment dictionary

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  • moving average — A series of arithmetic means calculated from data in a time series, which reduces the effects of temporary seasonal variations. For example, a moving average of the monthly sales figures for an organization might be calculated by averaging the 12 …   Big dictionary of business and management

  • moving average — average that is recalculated after every numerical change; method for calculating the value of inventory …   English contemporary dictionary

  • moving average — /ˌmu:vɪŋ æv(ə)rɪdʒ/ noun an average of share prices on a stock market, where the calculation is made over a period which moves forward regularly COMMENT: The commonest are 100 day or 200 day averages, or 10or 40 week moving averages. The average… …   Dictionary of banking and finance

  • moving average — noun One of a family of techniques used to analyze time series data, in which a weighted average is determined for a given data point based on its value and the past values. Syn: rolling average …   Wiktionary

  • moving average — Statistics. one of a succession of averages of data from a time series, where each average is calculated by successively shifting the interval by the same period of time. [1910 15] * * * …   Universalium

  • moving average — noun : the average of statistical data (as in a time series) computed over a progressively shifting interval …   Useful english dictionary