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A line chart is used to show information A diagram in which the numerical Candlesticks are graphical representations of
that changes over time. Line charts are values of variables are represented price movements for a given period of time.
created by plotting a series of several by the height or length of lines or They are commonly formed by the opening,
points and connecting with a straight rectangles of equal width high, low, and closing prices of a financial
line. instrument
NSE - NSE Real Time Price. Currency in INR
Follow
Following a the various prices of ITC LTD in the past months : That is from
march 31st to October 27th,
A technical indicator is a mathematical pattern derived from historical data used by technical traders or
investors to predict future price trends and make trading decisions. It uses a mathematical formula to
derive a series of data points from past price, volume, and open interest data.
Both simple moving average and exponential moving average are two sides of one coin ,that is division of moving
average.
MOVING AVERAGE
A moving average (MA) is a widely used technical indicator that smooths out price trends by filtering out the noise
from random short-term price fluctuations.
Simple moving average
Simple moving
averages calculat
e the average of
a range of prices
by the number of
periods within
that
range.following
figures shows
the simple
moving average
of the data
relating to shares
given by ITC LTD
in the various
months of
current financial
From the above showed figure it is clear about simple moving average rates of various data given by itc ltd.
To calculate a simple moving average (SMA) as a technical indicator for shares, follow these steps:
Select a time period: Determine the number of periods you want to use for your SMA. Common choices
are 50, 100, and 200 days, but you can adjust this based on your analysis goals.
Gather the historical data: Collect the closing prices of the shares for the chosen time period. You need a
set of consecutive closing prices to calculate the moving average.
Calculate the SMA:
Add up the closing prices for the selected time period.Divide the sum by the number of periods in your
time frame.Formula:
SMA = (Sum of Closing Prices for 'n' Periods) / 'n’
• For example, if you want to calculate a 50-day SMA, you would sum the closing prices of the last 50 days
and then divide the total by 50.Plot the SMA: Plot the calculated SMA on a chart with the corresponding
time periods. This will show you the average price over time, which can help identify trends and potential
support or resistance levels.
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