Moving Average
A moving average (MA) is an average of data for a certain number of time periods. It "moves" because for each calculation, we use the latest x number of time periods' data.
By definition, a moving average lags the market. An exponentially smoothed moving average (EMA) gives greater weight to the more recent data, in an attempt to reduce the lag.
A moving average (MA) is an average of data for a certain number of time periods. It "moves" because for each calculation, we use the latest x number of time periods' data.
By definition, a moving average lags the market. An exponentially smoothed moving average (EMA) gives greater weight to the more recent data, in an attempt to reduce the lag.
