Moving-average-price-chart Definition

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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 market’s trend.
Webster's New World Finance

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