MOVING AVERAGE

Moving Average



Moving Average

Moving averages is probably one of the simplest and most popular indicators in technical analysis including supply chain. Moving averages show the average price at a given point of time over a period of time. The moving average, however, is a lagging indicator, therefore does not necessarily indicate a change in trend. To address this issue, the use of a shorter period of time such as a moving average of 5 or 10 days would better reflect the recent price action moving average of 40 or 200 days.

In this case we would be forecasting for the period ...