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A widely used indicator in technical analysis that helps smooth out price action by filtering out the “noise” from random price fluctuations. A moving average (MA) is a trend-following or lagging indicator because it is based on past prices. The two basic and commonly used MAs are the simple moving average (SMA), which is the simple average of a security over a defined number of time periods, and the exponential/Weighted moving average (EMA), which gives bigger weight to more recent prices. The most common applications of MAs are to identify the trend direction and to determine support and resistance levels. While MAs are useful enough on their own, they also form the basis for other indicators such as the Moving Average Convergence Divergence (MACD).
Most of Inventory calculations are based on this moving average/weighted moving average to fair value for slight variations in prices throughout a period. This is also helpful for knocking the behaviour of stock price movement in the capital markets. The same way Sales can be indicated, Debtors, Creditors, Overheads like Salaries and other expenditures to have a close watch and control of expenses. Thank you for invite.
A moving average is simply the average value of data over a specified time period, and it is used to figure out whether the price of a stock or commodity is trending up or down.
moving average for example
by talking4 periods and generate he average of it for certain month
for month may ( we talk Jan and Feb and March and April ( divided these numbers by4 )
---
in next month we
WILL down January month and enter may month into consideration
for June ( we will take Feb and March And April and May )
this is the mean of moving average
very good answers
Agreed with Mr.Divyesh Patel
