Technical Analysis

Moving average

The average price over a rolling number of periods, used to smooth price data.

Plain-English context

Why it matters

Chart terms organize observed price and volume behavior, but they remain descriptions rather than guarantees.

EXAMPLE

A chart may display moving average differently on daily and weekly timeframes, so the timeframe and calculation method should always be identified.

COMMON MISTAKE

Treating Moving average as a prediction instead of one piece of historical context.

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