The moving average is probably the best known, and most versatile, technical indicator. A mathematical procedure in which the sum of a value plus a selected number of previous values are divided by the total number of values. Used to smooth or eliminate t he fluctuations in data and to assist in determining when to buy and sell.
See Also:
Average: An mathematical representation of the behaviour of a specific sector or index of the market (for example, the Dow Jones Industrial Average).
