A moving average plots the mean of the last set number of closing prices as a single line, smoothing short-term movement so direction is easier to see. A simple average weights every period equally while an exponential one gives more weight to recent prices. The line is a lagging construction: the length chosen is a judgement that changes the answer it gives.
Forex glossary
Moving Average
Related term
Trend
A trend is the general direction of price over the period you are looking at, commonly described as higher highs and higher lows in an uptrend, or lower highs a…
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