What Is Moving average?

A moving average is a technical indicator that smooths price data by computing a constantly updated average price over a specified time period. The two primary types are the Simple Moving Average (SMA), which weights all prices equally, and the EMA (Exponential Moving Average), which gives more weight to recent prices and reacts faster to price changes. Moving averages are foundational in algorithmic trading strategies, including trend-following and crossover approaches where a shorter-period moving average crossing above or below a longer-period moving average signals trade entries or exits.

See also

• EMA

• Technical indicator

• Trading strategy

• Trend

• Trend-following

• Mean reversion