A common technical analysis stock indicator, moving averages are a way to smooth out the price data of a stock by creating a constantly updating average price. When utilized, moving averages, the impacts of random, short-term fluctuations are mitigated. Moving averages are a fairly flexible indicator, meaning investors and traders can choose the time frame they want to analyze. Common timeframes used are 15, 20, 30, 50, 100, and 200 days. The shorter the timeframe, the more reactive the average will be to price changes.
We don't know everything about the markets. We're just devoted to learners. Taken from those smarter than ourselves, here's how we define Moving Averages.