What is Moving Average?
A moving average is the average price over a set number of recent bars, recalculated as each new bar forms, which produces a smooth line on the chart. It filters out small wiggles so the broader direction is easier to read. Common lengths include 20, 50, and 200 periods, and the line lags price because it is built from older data.
Why Moving Average matters
It is one of the most common ways to gauge trend direction and is a building block for many other tools.
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