Scribd
Upload
6 views3 pages

Understanding Moving Averages in Trading

A moving average is a technical analysis indicator that shows the average price of a security over a specified period of time. It is used to identify possible support and resistance levels and measure momentum. The document provides examples of 20-day, 60-day, and 200-day moving averages as well as charts showing relative strength and Bollinger Bands.

Uploaded by

percywwe
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
6 views3 pages

Understanding Moving Averages in Trading

A moving average is a technical analysis indicator that shows the average price of a security over a specified period of time. It is used to identify possible support and resistance levels and measure momentum. The document provides examples of 20-day, 60-day, and 200-day moving averages as well as charts showing relative strength and Bollinger Bands.

Uploaded by

percywwe
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Moving Average

An indicator frequently used in technical analysis showing the average value of a security's price
over a set period. Moving averages are generally used to measure momentum and define areas of
possible support and resistance.

MOVING AVERAGE FOR 20 DAYS

Moving Average 20 Days


2000
1000
0
1

115

229

343

457

571

Actual

685

799

913

1027 1141

Forecast

MOVING AVERAGE FOR 60 DAYS

Moving Average 60 Days


2000
1000
0
1

154

307

460
Actual

613

766
Forecast

919

1072

1225

MOVING AVERAGE FOR 200 DAYS

Moving Average 200 Days


2000
1000
0
1

154

307

460
Actual

613

766

919

1072

1225

Forecast

LINE CHART FOR 5 YEARS


0.800000
0.700000
0.600000
Relative Strength
C0./Market

0.500000
0.400000

Relative Strength
Market/Industry

0.300000

Relative Strength
Market/Industry

0.200000
0.100000
1
74
147
220
293
366
439
512
585
658
731
804
877
950
1023
1096
1169

0.000000

BOLLINGERS BANG (UPPER AND LOWER LIMIT)


1500.00

1000.00

500.00

Series1
Series2
Series3

1
57
113
169
225
281
337
393
449
505
561
617
673
729
785
841
897
953
1009
1065
1121
1177

0.00

-500.00

-1000.00

You might also like