Moving Average

Moving average is an indicator frequently used in technical analysis showing the average value of a security’s price over a set period. Value can be set through your charting program or scanning feature. Moving averages are generally used to measure momentum and define areas of possible support and resistance.

Normally, upward momentum is confirmed when a short-term average (e.g.15-day) crosses above a longer-term average (e.g. 50-day). Also known as a moving average crossover. Downward momentum is confirmed when a short-term average crosses below a long-term average.

Speak Stocks: Moving Averages