A moving average is a way to smooth out prices, or similar values, on a graph. Rather than displaying the exact price of a stock at a certain time, you can average the current price with recent historical prices, and plot the result. If you use more history, the graph will be further behind, but smoother.
There are several types of moving averages. The most common types are the simple moving average (SMA), the exponential moving average (EMA), and the volume weighted average price (VWAP).
Traders can use moving averages in many different ways. Our service generates alerts when a stock price crosses certain moving averages.
We offer the following alert types which are related to this topic. Click on the icon for a detailed description of the alert, or click on the example link for additional samples of each type of alert.