Moving Average Definition

Learn the definition of moving average and other ETF terminology from the etf.com glossary.

ETF
Jan 16, 2024
Edited by: etf.com Staff
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Learn more about Moving Average

Moving Average, a key analytical tool in the ETF arena, serves as a statistical calculation smoothing out price data over a specific timeframe. This technique aids investors and traders in identifying trends and potential turning points in an ETF's price movements. Whether using simple moving averages or more complex variations, investors leverage these indicators in technical analysis to gain insights into the prevailing market sentiment and make informed decisions. Moving averages contribute to a nuanced understanding of an ETF's trajectory, providing a valuable tool for those seeking to navigate the dynamic landscape of market trends with enhanced precision.

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