moving-average price chart

moving-average price chart definition - finance
A statistical-based trading tool that provides one method of analyzing a variety of price trends. A moving average is calculated by adding the prices, over a certain number of days, of the stock or investment being analyzed. The total is divided by the number of days. The advantage of a moving average price chart is that it smoothes price spikes and gives a truer indication of the marketÂ’s trend.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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