The average price over a period, drawn as a line
A moving average takes the average closing price over the last N days and plots it, recalculating each day. It smooths daily noise so the larger direction is easier to see. Shorter periods react quickly to price; longer ones move slowly. Twenty-five, seventy-five, and two hundred days are common choices, but no period is the correct one.
Closes of $1,000, $1,020, $980, $1,040, and $1,060 give a five-day average of $5,100 ÷ 5 = $1,020.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.