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Moving Average

A technical analysis indicator used in trading to identify trends and potential trend reversals in financial markets. For example, a 10-day moving average would calculate the average price of a financial instrument over the past 10 trading days, with each day's closing price added to the calculation and the oldest day's price dropped.

Moving averages smooth out the price action of a market and provide a visual representation of the trend direction. They can identify potential buy or sell signals for trend or reversal trades. Multiple moving averages are popular to find potential trend reversals.

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