MATHS PROJECT- TERM II

Calculating moving averages with the given even

periodicity

Name- Vanistha Choudhary

Class- XI C
Ref no.- 295
 CONTENTS:

S. No PAGE NO.
TOPIC

1. Project title
1
2. Table of contents
2
3. Introduction
3
4. Aim
4
5. Rationale
4
6. Mathematical Presentation
6-7
7. Reflection and Conclusion
8
8. Citation and Bibliography
9
 INTRODUCTION:

Even though everyone learns mathematics at school, it is difficult to define

exactly what mathematics is. Clearly, numbers, shapes and equations form
part of it, but only a small part compared to the vast space of
mathematical concepts and ideas.
Since childhood I have seen my parents being involved in the stock
market. I had no knowledge of it but recently, since gaining the knowledge
of moving averages i have seen things in a new light. I have seen my
parents refer to graphs while doing their work and I now understand that
it is used as an indicator and for technical analysis to predict the price
movement of stocks from day to day. Moving averages is one of the most
popular and widely used indicators and acts as a method of smoothing
price data and removing noise to visually depict and measure a trend.
 AIM AND RATIONALE:

The aim of this project is to go beyond the textbook pages and learn how
to practically use the graphs and ‘moving averages’ in our daily life. I want
to find the practical usage of terms and graphs which we make use of so
commonly. As moving averages is used by technical traders and creates an
updated average price, learning it’s practical usage will give me a greater
and better insight into the trading world.
I have a keen interest in the stock market and would like to
grow up and follow my parents’ footsteps and be involved in trading and
investing in the capital market. Hence, I was interested in the following
topic as it is very important to understand how to determine and identify
trend direction. I want to apply the knowledge I gain from this project and
start understanding the stock market in greater depth.
 QUESTION:

The production of a soft drink company in thousands of litres during each

month of a year is as follows-

Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

1.2 0.8 1.4 1.6 1.8 2.4 2.6 3.0 3.6 2.8 1.9 3.4

Calculate the five monthly moving averages and show these moving
averages on a graph paper.

SOLUTION:
First five monthly moving average= 1.2+ 0.8+ 1.4+1.6+1.8/5
= 6.8/5 = 1.36 and is placed against
March and so on.
Thus, we have
 Calculation of five-monthly moving average
Month Monthly 5 monthly moving 5 monthly
Production total moving average

Jan 1.2 -------------

Feb 0.8 ------------ 1/5
Mar 1.4------------- 6.8 -----------------> 1.36
Apr 1.6------------- 8.0 1.6
May 1.8------------- 9.8 1.96
June 2.4------------- 11.4 2.28
July 2.6------------- 13.4 2.68
Aug 3.0------------- 14.4 2.88
Sep 3.6------------- 13.9 2.78
Oct 2.8------------- 14.7 2.94
Nov 1.9-------------
Dec 3.4-------------
The link to the graph and historigram is-

https://docs.google.com/spreadsheets/d/1OQhX5YwAQh-oIGLVxCowk1vd
neb0BxIvYuEA8FJtG-A/edit?usp=sharing
REFLECTION and CONCLUSION:

Projects are an effective way to get concepts clearer and connect to the
real world. This project has done the same and now i have not only been
able to understand the concept of moving averages, but also how it is
effective in various spheres of life.
This project gave me the opportunity to explore how moving
averages is very commonly used in different areas in the real world
including the stock market, something I am really interested in. This also
gave me a microscopic view of how the capital markets function,
especially the movement and volatility of the stocks. It also taught me that
a disciplinary method is essential to follow in any aspect to be successful.
 CITATION and BIBLIOGRAPHY:

https://www.investopedia.com/articles/active-trading/052014/how-use-m
oving-average-buy-stocks.asp

https://zerodha.com/varsity/chapter/moving-averages/

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