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A trend following indicator. It is a series of averages of sequential data subsets.  It may be used as a curving trend line that follows the price action.  Buy signals are seen when prices cross above the moving average whereas sell signals are in place when prices cross below the moving average.  There are many moving average calculation methods:

  • Simple
  • Exponential
  • Time Series
  • Linearly Weighted
  • Triangular
  • Centered
  • Variable
  • Adaptive
  • Volume Adjusted

The major difference between the calculation methods is the weight attached to the most recent prices.

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