Moving Average
The Moving Average is the average of a price over a certain period of time. There are simple, exponential and other weighted averages which are not considered here. The difference between these averages is the weights assigned to the price values at different moments of time. Thus, the weights of the more recent values (at the end of the time period) are larger in the exponential average, while all weights are the same in the simple one.
Parameters:
- N - time period.
Calculation:
The simple average for the j-th interval is equal to the sum of values from (j-N)-th to j-th intervals divided by the number of intervals, N.
The exponential average is calculated according to the following formula:
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