Moving Average Calculator
Calculate simple moving averages for financial market analysis and trading decisions
Calculate Moving Average
Number of periods to include in the moving average calculation (e.g., 10 for 10-day MA)
Enter at least 10 price values to calculate moving averages
Moving Average Formula
MA(n) = (P₁ + P₂ + P₃ + ... + Pₙ) / n
Where:
- MA(n) = Moving Average for n periods
- P₁, P₂, P₃... = Price values
- n = Number of periods in the moving average
Example: 10-Day MA
Sample Stock Prices
Day 1-5: $100, $102, $101, $103, $105
Day 6-10: $104, $106, $108, $107, $109
Period: 10 days
Calculation
Sum: 100+102+101+103+105+104+106+108+107+109 = 1,045
10-Day MA: 1,045 ÷ 10 = $104.50
Common MA Periods
Trading Signals
Bullish Signal
Price crosses above moving average
Bearish Signal
Price crosses below moving average
Support/Resistance
MA acts as dynamic support or resistance
Trend Change
MA slope change indicates trend shift
Understanding Moving Averages in Technical Analysis
What is a Moving Average?
A moving average is a trend-following technical indicator that smooths out price fluctuations by creating a constantly updated average price over a specific time period. It's called "moving" because it moves along with the price data, adding new prices and dropping old ones.
Key Applications
- •Identify trend direction (uptrend, downtrend, sideways)
- •Generate buy and sell signals
- •Act as dynamic support and resistance levels
- •Smooth out price volatility for clearer analysis
Calculation Method
Simple Moving Average (SMA)
SMA = (P₁ + P₂ + ... + Pₙ) / n
Period Selection Guide
- Short-term (5-20 days): More sensitive, frequent signals
- Medium-term (21-50 days): Balanced sensitivity and reliability
- Long-term (100-200 days): Less sensitive, major trend changes
Pro Tip: Use multiple timeframes together for better confirmation of trend changes and trading signals.
Common Moving Average Trading Strategies
Price Crossover
Buy when price crosses above MA, sell when price crosses below MA. Simple but effective for trending markets.
Golden Cross
Bullish signal when a shorter MA (50-day) crosses above a longer MA (200-day). Indicates potential long-term uptrend.
Death Cross
Bearish signal when a shorter MA crosses below a longer MA. Suggests potential long-term downtrend.
Limitations to Consider
Lagging Indicator
Moving averages are based on past prices, so they lag behind current market action and may give late signals.
False Signals
In sideways or choppy markets, MAs can generate multiple false breakout signals, leading to whipsaw trades.