Detailed explanation of moving average calculation method

A moving average is a technical analysis tool based on statistical principles. By calculating the average price over a certain period of time, it removes short-term irregular fluctuations, thus more clearly reflecting the true trend of prices and helping to judge future trends. InfxtmIn foreign exchange and other trading platforms, this indicator is widely used. The calculation methods of moving averages mainly include arithmetic average method, weighted average method and exponential smoothing moving method.

The short-term oscillation of security prices is often more violent, and it is easy to interfere with the trend judgment. By comprehensively averaging the prices in a certain time period, a smoother price series can be obtained, which is helpful to identify the medium and long-term trend.

Take the daily line as an example:

5-Day Average = (C1 + C2 + C3 + C4 + C5) ÷ 5

Day 6 5 Average = (C2 + C3 + C4 + C5 + C6) ÷ 5

The calculated average price is marked on the daily price chart and then connected to form a smoothing curve to obtain moving averages for different periods such as 5 and 10 days.