Simple Moving Average

The Simple Moving Average function calculates a straightforward average of prices over a selected period. The calculation is made by looking back over a period and averaging the prices to arrive at an average value for that point in time. Repeating this process along the price line produces the moving average line.

To apply a Simple Moving Average to a graph:

• The Moving Average box will be displayed

  

• The Average Type will default to Simple
  
  
• The Phase will default to Centred
  
  
• Select Centred or Lagged. The Lagged plotting the average at the last point of the cycle as opposed to the Centre
  
  
• Select the required period used in the average by using the scroll bars on the Daily Data field.
  
  
• Click on OK and the graph will re-draw with the calculated moving average in place as shown in the diagram.