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Home > Terms > English, UK (UE) > Moving average
Moving average
The mean of prices over a pre-defined period, for instance, the previous five days. The moving average for different time periods can be charted to generate short- and medium-term buy/sell signals. For instance, funds have in the past tended to buy when the price crosses the 40-day moving average from below, and to sell when it cuts the average from above.
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- Part of Speech: noun
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- Industry/Domain: Energy
- Category: Energy trade
- Company: Platts
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