MOVING AVERAGE

METHODS
BY,
THOWFIKA S
 Moving average method

• Simple moving average

• Weighted moving average
SIMPLE MOVING AVERAGE METHOD

It is a technique that calculates overall trend in sales

volume from historical data of the company.
PURPOSE:
• Stock professionals – which stock to buy
• Business owners – sales forecasts
• Other professionals – investment decision on commodities
SIMPLE MOVING AVERAGE METHOD BASED
ON PERIOD
SOLUTION
:
Example-2
SOLUTION:
Weighted Moving Average Method

• The weighted moving average (WMA) is a technical indicator that assigns a greater
weighting to the most recent data points, and less weighting to data points in the distant
past.
• The WMA is obtained by multiplying each number in the data set by a predetermined
weight and summing up the resulting values.
• Traders use weighting moving average to generate trade signals, to indicate when to buy
or sell stocks.
• weighted moving average assigns a specific weight or frequency to each observation,
with the most recent observation 
 Biblography
www.emathzone.com
https://www.slideserve.com
www.educba.com
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