Moving Average Definition

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

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Reviewed by: etf.com Staff
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Edited by: etf.com Staff

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.

Related Terms

ETF Glossary is etf.com’s collection of key terms and definitions related to exchange-traded funds. ETFs are investment funds that are traded on stock exchanges, and they can encompass a wide range of asset classes, including stocks, bonds, commodities and more. Given the diverse range of ETFs and the complexity of financial markets, having a clear understanding of ETF-related terminology is instrumental for investors looking to make informed decisions, manage risks effectively and navigate the evolving landscape of ETF investments.