Duration: 11:13
Level: Beginner

Moving averages may be used to filter out noise and show us trends. In this lesson we’re going to look at some different types of moving averages, ways to use different combinations of moving averages, crosses between moving averages and then we’re going to consider how they are used in traditional technical analysis.

Contributed By: MarketLife

Study Notes:

What is a Moving Average?

Also called a rolling or running average (mean).

Use in time series analysis to:

  • Smooth out short-term fluctuations
  • Filter out noise
  • Highlight longer-term trends

Types of Moving Averages

Comparison of MA Types

Comparison of MA Lengths

Price Touching or Crossing MA

Moving Average Slopes

Moving Average Crosses

Look Into Stats Behind Tools You Use

Much of the received wisdom of technical analysis is market lore…

Handed down from past gurus or authors…

Much of it comes from an era when data was not easily accessible and when tools to analyze data easily did not exist.

Today, we can test easily, and results can be surprising.

Moving Average Crossovers

Out of Sample Results

Moving Average Trend Indicator Stats


  • What is a moving average and why use them?
  • Explore different types and combinations of averages.
  • Consider how they are used in traditional technical analysis.


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