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as a tool to help analyze market trends.
The moving average can be calculated in 5 ways.
1. Simple Moving Average
2. Weighted Moving Average
3. Modified Moving Average
4. Exponential Moving Average
5. Hamming Moving Average
The moving average that is commonly used is
- Simple Moving Average will use a prices from the past to find a simple average.
- Exponential Moving Average will use a prices from the past to find a moving average.
The time it takes to calculate the moving average.
- 10 days for Short-term investment
- 25 days for Rather Medium-term investment
- 75 days for Medium-term investment
- 200 days for Long-term investment
Benefits of moving averages
Moving Average will use a fluctuation price and find average to be easier to predict.
so, benefits of moving average is
- Used as a tool for tell predicted trends.
- Used as a tool for tell the support market resistance or currency resistance.
- Used as a tool for finding a purchase point.
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