Скачать или смотреть മൂവിങ് ആവറേജ് സിമ്പിളാണ്

What is a Moving Average (MA)?

A Moving Average is a technical indicator that shows the average price of a stock over a specific period of time.
It moves because as each new price comes in, the oldest price is removed from the calculation.

Main purpose:
• Reduce market noise
• Identify trend direction
• Act as support & resistance

Simple example:
If a stock’s last 5 closing prices are averaged → that is a 5-period Moving Average.


Why Moving Averages are Important (Especially for Beginners)

✔ Makes charts cleaner and easier to understand
✔ Helps identify trend (uptrend / downtrend / sideways)
✔ Helps avoid emotional trading
✔ Widely used by traders, investors & algorithms

📌 “Price shows emotion, moving average shows direction.”


#stockmarketmalayalam #stockmarket

Types of Moving averages

🔹 1. Simple Moving Average (SMA)
• Gives equal weight to all prices
• Slower but more reliable
• Best for beginners

Formula (simple):
Average of last N prices

Example:
• 20 SMA = average of last 20 candles

🔹 2. Exponential Moving Average (EMA)
• Gives more weight to recent prices
• Reacts faster to price changes
• Very popular in intraday trading

📌 For intraday → EMA is preferred