Moving Averages
- 9 years ago
http://www.wealthchaperone.com/videos/moving-averages/
In this lesson by Wealth Chaperone you will learn about moving averages.
How do you calculate an average? Add up all of the prices and divide by the number of prices. What is a moving average? It is called moving since it uses the last few numbers in the calculation. When plotting a moving average a new price is added, an old price is dropped, and a new average is calculated. If the stock price moved below the moving average you would sell. If the stock price moved above the moving average you would buy. Next the video will explain moving average crossovers. Two moving averages are put on the same chart. One moving average represents 20 days and the other represents 50 days. The 20 day moving average is faster and the 50 day moving average is slower. The signal to sell the stock occurs when the faster moving average moves below the slower average. The signal to buy the stock comes when the faster moving average moves about the slower average.
In this lesson by Wealth Chaperone you will learn about moving averages.
How do you calculate an average? Add up all of the prices and divide by the number of prices. What is a moving average? It is called moving since it uses the last few numbers in the calculation. When plotting a moving average a new price is added, an old price is dropped, and a new average is calculated. If the stock price moved below the moving average you would sell. If the stock price moved above the moving average you would buy. Next the video will explain moving average crossovers. Two moving averages are put on the same chart. One moving average represents 20 days and the other represents 50 days. The 20 day moving average is faster and the 50 day moving average is slower. The signal to sell the stock occurs when the faster moving average moves below the slower average. The signal to buy the stock comes when the faster moving average moves about the slower average.