Ever wonder how a Moving Average is calculated?

jondoe (85)in #charts • 7 years ago

It is really very simple, but I'll go over it anyways.

For a 5 period moving average, each candle would represent one period.

The moving average would take the average of the last 5 periods and give an estimate of the 6th.

(1 + 2 + 3 + 4 + 5) / 5 = 6

A cross from underneath the MA is bullish and cross from above the MA is bearish.

7 years ago in #charts by jondoe (85)

Sort:

corndog54 (53) 7 years ago

Thanks for the math lesson 🧐🤪🧐

jondoe (85) 7 years ago

Did you learn anything?

bee84 (57) 7 years ago

@jondoe didn't know that the moving average would take the average of the last 5 periods and give an estimate of 6th.. great info !!

$0.00

jondoe (85) 7 years ago

Thanks.