Unknown Indicator
Simple Moving Average In A Nutshell
When picking what period length to use, keep in mind the longer you extend to period, the smoother the line will be. Conversely, the shorter the periods the more choppy and variable the line may be. One way to use the moving average is to gauge when a stock is getting to far away, as this can allow you to implement the idea of mean reversion. Using the moving average in conjunction with standard deviation or Bollinger Bands, you can get an idea of where the price average is and plan accordingly.
When you first hop onto a charting platform and look at the tools, you will note the various types of moving averages. You can essentially pick any average type for any given length of time. For this article, we will specifically go over the simple moving average and how you can use it in your investing and trading techniques. How the moving average is calculated is by adding up all the closing prices for the period you determine, and dividing them by the total number of periods you have chosen. Not that you will ever need to do this, it is nice to understand how the tool you are using works.
Closer Look at Simple Moving Average
When implementing this, you want to play around with the periods to full understand what will work best for you trading style. Popular periods include the 20 period, 50 period, and 200 period, but these certainly are not the ones you have to use. Be sure to also use it on a demo account first and tweak everything to your liking. You may even end up finding it doesn’t work for you. Either way, this is a great tool to simply gauge where the market has been and where it might want to be. If you need ideas, join an investing community and bounce your ideas off of everyone, as they are more than willing to help.
Other Indicators
All Technical Analysis
Trending Themes
If you are a self-driven investor, you will appreciate our idea-generating investing themes. Our themes help you align your investments inspirations with your core values and are essential building blocks of your portfolios. A typical investing theme is an unweighted collection of up to 20 funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of equities with common characteristics such as industry and growth potential, volatility, or market segment. | Artificial Intelligence Invested few shares | |
 | Momentum Invested over 30 shares | |
 | Hedge Favorites Invested over 60 shares | |
 | Banking Invested over 30 shares | |
 | Investor Favorites Invested few shares | |
 | Baby Boomer Prospects Invested over 60 shares | |
 | Adviser Favorites Invested few shares | |
 | Driverless Cars Invested over 60 shares | |
 | Manufacturing Invested over 30 shares | |
 | Social Domain Invested over 20 shares |
Other Complementary Tools
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |