Market
What is moving average?
The average price over a recent period, updated each day.
Explained in more detail
It smooths out daily noise to show the general direction of a price. It describes what has already happened rather than predicting what comes next, which is the main thing people forget about it.
An example
For instanceA 200 day moving average is the average closing price of the last 200 days.
Why this matters to you
You will meet this word in broker apps, company results and market news. Knowing what it means is not the goal on its own. The goal is being able to judge whether a number is good or bad for the investment you are actually holding.
On AlphaVik, any time moving average appears in a view or a lesson, you can hover or tap the word and this explanation comes with it. You never have to leave the page to look something up.