Moving Average is a trend indicator which is an average of closing prices in a time frame that can help identify a trading opportunity.Viewchapters→←Hide1Background2IntroducingTechnicalAnalysis3TheChartTypes4GettingStartedwithCandlesticks5SingleCandlestickpatterns(Part1)6SingleCandlestickpatterns(Part2)7SingleCandlestickpatterns(Part3)8Multiplecandlestickpatterns(Part1)9MultipleCandlestickPatterns(Part2)10MultipleCandlestickPatterns(Part3)11TheSupportandResistance12Volumes13MovingAverages14Indicators(Part1)15Indicators(Part2)16TheFibonacciRetracements17TheDowTheory(Part1)18TheDowTheory(Part2)19TheFinale–Helpingyougetstarted20SupplementaryNotes121InterestingfeaturesonTradingView22TheCentralPivotRangeWehavealllearntaboutaveragesinschool,movingaverageisjustanextensionofthat.Movingaveragesaretrendindicatorsandarefrequentlyusedduetotheirsimplicityandeffectiveness.Beforewelearnmovingaverages,letushaveaquickrecaponhowaveragesarecalculated.Assume5peoplearesittingonanicesunnybeachenjoyinganicechilledbottledbeverage.Thesunissobrightandnicethateachoneofthemendsupdrinkingseveralbottlesofthebeverage.Assumethefinalcounttobesomethinglikethis:SlNoPersonNoofBottles01A0702B0503C0604D0305E08Total#ofbottlesconsumed29Assumea6thpersonwalksintofindout29bottlesofbeverageslyingaroundthem.Hecanquicklygetasenseof‘roughly’howmanybottleseachofthemconsumedbydividing[thetotalnumberofbottles] by[totalnumberofpeople].Inthiscase,itwouldbe:=29/5=5.8bottlesperhead.So,theaverage,inthiscase,tellsusroughlyhowmanybottleseachpersonhadconsumed.Obviously,therewouldbefewofthemwhohadconsumedaboveandbelowtheaverage.Forexample,PersonEdrank8bottlesofbeverage,whichiswayabovetheaverageof5.8bottles.Likewise,personDdrankjust3bottlesofbeverage,whichiswaybelowtheaverageof5.8bottles.Thereforetheaverageisjustanestimate,andonecannotexpectittobeaccurate.Extendingtheconcepttostocks,herearetheclosingpricesofITCLimitedforthelast5tradingsessions.Thelast5-dayaverageclosewouldbecalculatedasfollows:DateClosingPrice14/07/14344.951