// TRADING TERMINOLOGY
What is Moving Average (MA)?
A technical indicator that smooths out price action by filtering out the "noise" from random short-term price fluctuations.
In-Depth Explanation
Moving averages are lagging indicators that follow the trend. The two most common types are the Simple Moving Average (SMA) and the Exponential Moving Average (EMA), which gives more weight to recent prices.
Practical Example
"A trader uses the 200-day SMA to determine the long-term trend of a stock."
Related Terms
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