Glossary
Moving Averages
A technical indicator that smooths price data to identify the direction of a trend.
Moving averages calculate the average price over a lookback period. Common types include the simple moving average (SMA) and the exponential moving average (EMA). They are widely used for trend filtering and crossover signals.
Key Points
- SMA gives equal weight to all prices; EMA weights recent prices more.
- Crossovers can generate entry and exit signals.
- Moving averages are lagging indicators.