Artificial Intelligence Technology Solutions Inc (AITX)

[Hyperborean]

Moving Averages

Moving average is a technical analysis tool that smooths out price data by creating a constantly updated average price. On a price chart, a moving average creates a single, flat line that effectively eliminates any variations due to random price fluctuations.

The average is taken over a specific period of time–10 days, 20 minutes, 30 weeks, or any time period the trader chooses. For investors and long-term trend followers, the 200-day, 100-day, and 50-day simple moving average are popular choices.

There are several ways to utilize the moving average. The first is to look at the angle of the moving average. If it is mostly moving horizontally for an extended amount of time, then the price isn't trending, it is ranging. A trading range occurs when a security trades between consistent high and low prices for a period of time.

If the moving average line is angled up, an uptrend is underway. However, moving averages don't make predictions about the future value of a stock; they simply reveal what the price is doing, on average, over a period of time.

Crossovers are another way to utilize moving averages. By plotting a 200-day and 50-day moving average on your chart, a buy signal occurs when the 50-day crosses above the 200-day. A sell signal occurs when the 50-day drops below the 200-day.1? The time frames can be altered to suit your individual trading timeframe.
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