 
 
Options Tutorial:
Options History

Options Overview

Options Expiration 
S&P 500 List 
Why
Options 
Options Types

Options Styles

Exercise and Expiration
 Technical Analysis
 Calls and
Puts 
Call Options

Put Options

Options Chart 
S&P 500 
Option Symbol

Time Value 

ETFs Trading 
In the Money Options 
Technical Studies

Options Glossary 
Etfs
 MACD 
Moving Average
 QQQ 
Directory 
Technical Analysis 
Technical Analysis  Moving Average
A moving average is a method, tools used to analyze a set of data points by
creating a set of averaged data. A moving average is represented as a line (set
of data points) and is commonly used with time series. In technical analysis
moving average is the basic and most used tools which is used to smooth out
price (volume, advancedecline data or any other stock's data ) shortterm fluctuations
and spikes and highlight longerterm
trends. SMA(n) = (A1+A2+...+An) / n Where A1An could be close value of the price bars and n is the number of bars. In some cases simplified formula could used to calculate simple moving average: SMA(n) = Previous SMA  Previous Close / n + Current Close / n An exponential moving average (in some cases called as weighted moving average) could be calculated by following formula: EMA(n) = 2 / (1 + n) * (Close  Previous EMA) + Previous EMA By itself, a moving average applied to the stock's price, stock's volume or any other stock's
parameter does not predict trend changes and it does not tell where the price of
the stock will be in the future. Rather, the moving averages reveal the current
trend by removing shortterm spikes and movements from the general trend. If a
moving average applied to stock's price moves up technical analysis states that
the current stock's trend is Bullish (uptrend). If a moving average applied to
a stock's price declines technical analysis states that the current stock's
sentiment and trend is Bearish (downtrend). In similar way, rising moving
average applied to the stock's volume would indicate increase in the trading
activity, while decline of moving average applied to the stock's volume would
indicate halting in trading activity.
This is a simple example of using main characteristics of the moving averages
to predict trend changes and which are used in the
MACD, TRIX and other more
advance technical indicators. 
Index Quotes
S&P 500 Quotes ETFs Quotes
SPY Quotes ETFs Glossary
Stock ETFs 

Financial and Investments Directories: Banking  Brokerage Services  Currencies Trading  ETFs Trading  Mortgages and Loans  Futures Trading  Insurance  Mutual Funds  Options Trading  Stocks Trading Disclaimer:
All information and research results on this site is intended only
for informational and educational purposes and not as a solicitation to make
an investment. Therefore you should not make any decisions based on our
signals, our trading system or any other information on this site.  
