How do you Find Moving Average?
Moving Average is a measure used to analyze data points in a total data set. It is also known as running or rolling average. Moving Average can be categorized as Simple Moving Average (SMA), Exponential Moving Average (EMA), Cumulative Moving Average(CMA) and Weighted Moving Average (WMA).
SMA = (Pm + Pm-1 + .......Pm-(n-1)) / n
CMA = x1 + x2 + ...... + xn / n
WMA = [nP1 + (n-1)P2+...........+2Pn(n-1) + p(n)] / [n + (n-1) + ......2 + 1]
EMA = (Today Price x k) + (Yesterday Price x (1 - k ))
k = 2 / ( No. of Days +1)
Pm, Pm-1,......, Pm-(n-1)= Closing Prices
x1,x2,....xn = Data values
n = Total number of items
Use this step by step tutorial to learn how to calculate all the moving averages.