Continuously calculated average of a certain number of historical prices of a security based on the security price data over a given period.
The moving average is calculated as part of the technical analysis to identify a trend based.on the price data of a security over a given period.
The most basic form is the simple moving average (SMA). It is the arithmetic mean value of the prices and is usually published as a 200-day moving average. For this purpose, the closing prices of the previous 199 days and the current price are summed up and divided by 200 Then, each newest closing price of the respective time series is added to the time series while the oldest is eliminated from it, resulting in a continuous time series of the averages of a price curve. They smooth out the effects of short-term developments, revealing long-term price trends.
Tools of technical analysis such as the 200-day moving average can be added to each chart with the help of the chart tool on boerse-frankfurt.de.
