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What does it mean moving average for the financial markets?

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تم إضافة السؤال من قبل georgei assi , مدير حسابات , المجموعة السورية
تاريخ النشر: 2014/09/16
VENKITARAMAN KRISHNA MOORTHY VRINDAVAN
من قبل VENKITARAMAN KRISHNA MOORTHY VRINDAVAN , Project Execution Manager & Accounts Manager , ALI INTERNATIONAL TRADING EST.

A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random price fluctuations. A moving average (MA) is a trend-following or lagging indicator because it is based on past prices. The two basic and commonly used MAs are the simple moving average (SMA), which is the simple average of a security over a defined number of time periods, and the exponential/Weighted  moving average (EMA), which gives bigger weight to more recent prices. The most common applications of MAs are to identify the trend direction and to determine support and resistance levels. While MAs are useful enough on their own, they also form the basis for other indicators such as the Moving Average Convergence Divergence (MACD).

Most of Inventory calculations are based on this moving average/weighted moving average to fair value for slight variations in prices throughout a period.   This is also helpful for knocking the behaviour of stock price movement in the capital markets.   The same way Sales can be indicated, Debtors, Creditors, Overheads like Salaries and other expenditures to have a close watch and control of expenses.   Thank you for invite.

georgei assi
من قبل georgei assi , مدير حسابات , المجموعة السورية

It is a rate based on the prices of securities or commodities over a period of time (from days to several years) shows that rate changes that have occurred in the market over the last period. It includes the moving average recent daily numbers of variables.

Divyesh Patel
من قبل Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

A moving average is simply the average value of data over a specified time period, and it is used to figure out whether the price of a stock or commodity is trending up or down.

Ahmed kandil
من قبل Ahmed kandil , Cost Controller , Battour Holding Cpompany

moving average for example 

 

by talking4 periods and  generate he average of it for certain month

for month may  ( we talk Jan and Feb and March and April ( divided these numbers by4 ) 

---

in next month we 

WILL down January month and enter may month into consideration

for June  (  we will take Feb and March And April and May ) 

this is the mean of moving average 

mohamed Hakim CMA CPA Candidate
من قبل mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia

very good answers

 

Sara Khan
من قبل Sara Khan , financial and admin assistant , Ministry Of Defence

Agreed with Mr.Divyesh Patel

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