Technical analysis

Moving average

A moving average smooths price by averaging it over a set period, to make the trend clearer.

By smoothing out the noise, it helps spot the overall direction. A short average reacts fast, a long one is slower but more reliable. The crossover of two averages is a widely followed signal.

Example

When the 20-period moving average crosses above the 50-period, many traders read it as a bullish signal.

Related terms

Ready to put it into practice?

Understanding a term is good. Applying it on a real platform with a clear method is better. That is exactly what we do in 5 days.

← All terms