Stock-exchange glossary

A Moving Average is an indicator that shows the average value of a security's price over a period of time. To find the 50 day moving average the closing prices from the past 50 days are added up and divided by 50. And because prices are constantly changing it means the moving average will move as well. Moving averages are one of the most popular and easy to use tools available to the technical analyst. They smooth a data series and make it easier to spot trends, something that is especially helpful in volatile markets. They also form the building blocks for many other technical indicators and overlays.