Ever wonder how a Moving Average is calculated?

in charts •  6 years ago 

It is really very simple, but I'll go over it anyways.

For a 5 period moving average, each candle would represent one period.

The moving average would take the average of the last 5 periods and give an estimate of the 6th.

(1 + 2 + 3 + 4 + 5) / 5 = 6

A cross from underneath the MA is bullish and cross from above the MA is bearish.

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Thanks for the math lesson 🧐🤪🧐

Did you learn anything?

@jondoe didn't know that the moving average would take the average of the last 5 periods and give an estimate of 6th.. great info !!

Thanks.