Moving Average
Trend, MA
- What it shows
The average closing price of the last N bars, drawn as one line over the candles. It smooths out bar-to-bar noise so the direction of price is easier to see.
- How it is built
Add the last N closes and divide by N. Every bar in the window counts equally, and the oldest one drops out as a new bar arrives.
Default: Length 9, source close.
- How traders read it
- A rising line with price above it is read as an uptrend, a falling line with price below it as a downtrend.
- The longer the length, the slower the line and the fewer false turns.
- Price crossing the line, or a fast line crossing a slow one, is the usual signal to look at.
Related indicators
Moving Average ExponentialSmoothed Moving AverageSupertrendIchimoku Cloud