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Moving Average or MA

A moving average is a technical analysis indicator used to display a markets price action using a smooth line representing the average price. The moving average indicator is predefined by the user and set to a specific time period and number of units within a given chart. Moving averages are trend-following indicators and considered lagging indicators because the trend shown is the average price based on the past. However, moving averages can still provider traders a simple and very effective way to display the market trend and strength.