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Moving Averages

Tobi

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These are the basic indicators you should get yourself acquainted with from the beginning. They make up the base of most other technical indicators and so a rudimentary knowledge early on will help you determine how other indicators work.

Two things are necessary to determine a moving average: firstly a set of prices and a time series over which you want to analyze the data. I look at simple moving averages, which is the mean of the previous prices from the time series you have requested. You can have both short and longer-term moving averages, for example 21 and 200 periods, you can also determine if you want to look at hourly, daily or weekly prices. For example, a 21-hour moving average looks at hourly prices over the last 21 periods, a 200-hr looks at hourly prices over the last 200-periods.
 
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