Moving Averages
We can use a moving average to analyse a set of data points. This is done [automatically] by generating a range of averages from smaller subsets of the data from the full period. A moving average smooths out short-term variation, and highlights long-term inclinations (these short/long-term changes are dependent on the selected time periods). There are a number of different moving averages that we can consider:
- Adaptive Moving Average
- Delta Weighted Moving Average
- Exponential Moving Average
- High/Low Moving Average
- Multiple Moving Average
- Simple Moving Average
- Weighted Moving Average
- Volume Weighted Moving Average
These are all a variation on the Simple Moving Average.