MOVING AVERAGES

The most popular method. A Moving Average is an indicator that shows the average value of a security's price over a period of time. When calculating a moving average, a mathematical analysis of the security's average value over a predetermined time period is made. As the security's price changes, its average price moves up or down. Moving averages can be calculated on any data series including a security's open, high, low, close,volume, or another indicator. A moving average of another moving average is also common. Im ussualy use MA30, MA40, MA60, and MA200 days volume.

Example :

For example, to calculate a 30-day moving average of ANTM: First, you would add ANTM's closing prices for the most recent 30 days. Next, you would divide that sum by 30; this would give you the average price of ANTM over the preceding 30 days. You would perform the same calculation tomorrow: add up the previous 30 days' closing prices, divide by 30, THAT’S MA30.