Moving Average Formula and Strategy Guide

Simply put Moving Averages are a math calculation that averages out a series of numeric values. A moving average series can be calculated for any time series. In finance it is most often applied to stock and derivative prices, percentage returns, yields and trading volumes. There are three universal types of moving averages to calculate. The simple moving average is one of the most popular indicators used and is easy to calculate. There is also a weighted and an exponential moving average which are more sensitive to price fluctuations but more complicated to formulate.In this booklet we review and cover: -What is a Moving Average? -How many types of moving averages are there to use. -How to calculate a moving average -Which inputs to average? -Time dimensions for moving averages. -Cross over signals.  -Moving average channels. -Filters on moving average signals using Stochastics, MACD and other indicators. -Use of Fibonacci as moving average settings. -Use of Pivot Points as a moving average system.