MOVING AVERAGE

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The most popular type of technical indicator, a moving average (MA) is a line on a chart that basically functions to remove ‘noise’ from price action. The three main types of moving average are simple (SMAs), exponential (EMAs) and linear weighted (LWMAs). These all work basically the same but EMAs are weighted somewhat toward recent prices and LWMAs are weighted fairly strongly toward recent prices. See also ‘death cross’, ‘golden cross’, ‘MACD’ and technical analysis.

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