Moving averages are most effective in trending markets. There are three types of moving averages, Simple, Exponential and Weighted. a 50 day MA and a 200 day MA) an investor can notice changes in trends that might not have been seen otherwise. By comparing the averages of multiple time frames (i.e. By keeping a running average of price for a given period, moving averages smooth out the “noise” of daily trading activity. ![]() Moving Averages are one of the simplest and most effective forms of technical analysis.
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